A number of fintech companies and NBFCs “backed by” Chinese funds have generated proceeds of crime worth more than Rs 940 crore by indulging in predatory lending activities and violating RBI guidelines while operating in India, the Enforcement Directorate said on Wednesday. The federal probe agency has mounted a crackdown on such companies who, it said, were “operating on the basis of instructions from Chinese, Hong Kong persons” as they inked agreements with a clutch of domestic non-banking fin ..
It was found that various fintech (financial technology) companies backed by Chinese funds have made agreements with these NBFC companies for providing instant personal loans of term ranging from 7-30 days,” the agency said in a statement.
Fintech companies brought the funds to be lent to the public, did MoU (memorandum of understanding) with “defunct” NBFCs for their lending licence, it said.
Read more at: