Current Affairs - Banking - Discussion

The Reserve Bank of India cancelled the NBFC (Non-Banking Financial Company) licence of Datta Finance and Trading Pvt Ltd because it violated digital lending guidelines. The company outsourced core lending functions such as customer sourcing, KYC verification, loan disbursal, and recovery, which breaches RBI’s Fair Practices Code and Digital Lending Guidelines. The cancellation prevents Datta Finance from offering or recovering loans and signals RBI’s strict enforcement of ethical conduct and regulatory compliance in the digital lending sector. This move highlights RBI’s emphasis on consumer protection and oversight of financial service providers.