The account numbers, payment gateways opened on the basis of KYC documents of these Indian nationals were utilised to provide loans to the public and high processing fees and usurious interest rates were charged. For the recovery of the loans and the high interest rates, unethical ways were adopted with the customers.

These short-term loans were provided by these fintech companies through Non-Banking Financial Companies (NBFCs). The fintech companies utilized their own funds received from abroad (mainly from China) for the purpose of giving loans at usurious rates of interest to unemployed youth and other vulnerable sections of society, through the NBFCs by making arrangement of security deposit of the amount equivalent to the loans granted by the NBFCs to the borrowers. During the course of investigation, it was also learnt that these companies layered and remitted the funds abroad. Further investigation in the matter is on.