{"id":3767,"date":"2025-01-24T11:47:56","date_gmt":"2025-01-24T06:17:56","guid":{"rendered":"https:\/\/kreditbazar.com\/blog\/?post_type=news&p=3767"},"modified":"2025-01-24T11:49:05","modified_gmt":"2025-01-24T06:19:05","slug":"rbi-cancels-nbfc-registration-of-x10-financial-services-ltd","status":"publish","type":"news","link":"https:\/\/kreditbazar.com\/blog\/news\/rbi-cancels-nbfc-registration-of-x10-financial-services-ltd\/","title":{"rendered":"RBI Cancels NBFC Registration of X10 Financial Services Ltd"},"content":{"rendered":"
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In a notable regulatory move, the Reserve Bank of India (RBI) has revoked the registration of X10 Financial Services Ltd<\/strong>, a Mumbai-based Non-Banking Financial Company (NBFC). This decision stems from irregularities identified in the company\u2019s digital lending operations.<\/p>\n\n\n\n

Key Reasons Behind the Cancellation<\/strong><\/h2>\n\n\n\n

The RBI\u2019s decision to cancel the registration was based on multiple violations of the guidelines governing the outsourcing of financial services in digital lending. Some of the major breaches include:<\/p>\n\n\n\n

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  1. Outsourcing Core Functions<\/strong>: The company outsourced critical operations like credit appraisal, determination of interest rates, and Know Your Customer (KYC) verification to third-party Service Providers (SPs).<\/li>\n\n\n\n
  2. Lack of Due Diligence<\/strong>: X10 Financial Services Ltd failed to adequately assess and monitor the activities of its service providers.<\/li>\n\n\n\n
  3. Code of Conduct Violations<\/strong>: The company did not adhere to the RBI\u2019s prescribed code of conduct for outsourcing financial services, leading to lapses in compliance.<\/li>\n<\/ol>\n\n\n\n

    Service Providers Involved<\/strong><\/h2>\n\n\n\n

    The company primarily offered loans through various mobile applications operated by third-party service providers. These included:<\/p>\n\n\n\n