RBI Cancels Zavron Finance's Registration Over Irregular Lending Practices.
Banking & Finance
The Reserve Bank of India (RBI) cancelled the registration of Nagpur-based Zavron Finance on December 2, 2024, due to multiple violations of RBI guidelines on digital lending practices. Zavron Finance outsourced core decision-making functions such as credit appraisal, loan disbursal, interest rate determination, and KYC verification to third-party service providers without conducting due diligence on their competence, security, and internal controls. The company also failed to provide loan agreements and sanction letters in vernacular languages to its customers, violating the fair practices code. As a result, Zavron Finance is no longer authorized to conduct business as a non-banking financial institution (NBFI).
- RBI cancelled Zavron Finance's registration on December 2, 2024.
- Violations included outsourcing core functions without due diligence.
- Failure to provide loan agreements in vernacular languages.
Main Point :- (i) Zavron Finance is prohibited from operating as an NBFI.
- Governor: Shaktikanta Das
- Headquarters: Mumbai, Maharashtra, India
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