ED launched an investigation into Chinese-backed fintech and NBFCs


The Directorate of Enforcement (ED) launched an investigation into Chinese-backed fintech and NBFCs. The investigation agency discovered that these companies formed joint ventures with 'Chinese and Hong Kong persons' to provide illegal "instant personal loans" to the country's gullible public.


The ED also claims that these fintech and NBFCs generated over INR 940 Cr in 'proceeds of crime' by engaging in predatory lending activities and violating RBI guidelines while operating in India. According to a PTI report, ED officials stated that fintech companies that are unlikely to obtain a new NBFC licence from the RBI have devised the MoU route with defunct NBFCs to engage in large-scale lending activities.

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