RBI cancels permits of Polytex India and Star Finserv citing rule violations

In the case of Polytex, the RBI said it has violated  the violated RBI guidelines on code of conduct in outsourcing of financial services by outsourcing its core decision-making functions related to client sourcing, Know Your Customer (KYC) verification, credit appraisal, loan disbursal, loan recovery, follow up with borrowers and attending and resolving complaints from borrowers, the RBI said.