RBI cancels registration of X10 Financial Services

Mumbai: The Reserve Bank of India on Tuesday said it has cancelled registration of X10 Financial Services Ltd, a non-banking financial company (NBFC), due to irregularity in its digital lending operations.

The Mumbai-based company was providing loans through several service providers (mobile apps), including Wecash Technology, XNP Technology, Yarlung Technology, Xinrui International, Omelette Technology, Mad-Elephant Network Technology and Huidatech Technology.

RBI said the Certificate of Registration (CoR) has been cancelled as the company violated guidelines on the code of conduct in outsourcing of financial services in its digital lending operations by outsourcing its core decision-making functions such as credit appraisal, fixing of rate of interest as well as Know Your Customer verification, to the Service Provider (SP) and failed to conduct due diligence on the SPs.

The CoR was issued to X10 Financial Services Ltd, previously known as Abhishek Securities Ltd, in June 2015. The company cannot transact the business of a NBFC, RBI said.