The Reserve Bank of India on Monday said it has cancelled registration of Pune-based Kudos Finance and Investments and Mumbai-based Credit Gate for regulatory lapses in lending practices.

With cancels Certificate of Registration (CoR), the two NBFC should not transact the business of a Non-Banking Financial Institution (NBFI), the RBI said in a statement.

"The CoR of the ... NBFCs have been cancelled on account of violation of RBI Guidelines on Outsourcing and Fair Practices Code in their digital lending operations undertaken through third party apps which was considered detrimental to public interest," it said.

According to the statement, the entities were also not complying with the extant regulations pertaining to charging of excessive interest and had resorted to undue harassment of customers for loan recovery purposes.

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