RBI cancels NBFC X10 Financial Services’ registration over digital lending violations
Mumbai: The Reserve Bank of India (RBI) announced on Tuesday the cancellation of the registration of X10 Financial Services Ltd, a Mumbai-based non-banking financial company (NBFC), due to irregularities in its digital lending practices.
The company, which provided loans via multiple service providers—including Wecash Technology, XNP Technology, Yarlung Technology, Xinrui International, Omelette Technology, Mad-Elephant Network Technology, and Huidatech Technology—was found in violation of RBI’s code of conduct for outsourcing financial services.
According to the central bank, X10 Financial Services outsourced key decision-making functions such as credit appraisal, interest rate determination, and Know Your Customer (KYC) verification to its service providers without conducting adequate due diligence.
These actions contravened RBI guidelines on the outsourcing of financial services in digital lending operations.
X10 Financial Services Ltd, formerly known as Abhishek Securities Ltd, had received its Certificate of Registration (CoR) as an NBFC in June 2015.
With the cancellation of its CoR, the company is now barred from conducting NBFC-related activities, the RBI confirmed.
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