The Reserve Bank of India on Wednesday lifted supervisory restrictions on Asirvad Micro Finance and DMI Finance. Restrictions were imposed on these NBFCs in October 2024.
“Now, having satisfied itself based on companies’ submissions, and in view of their adoption of revamped processes, systems, and the companies’ commitment to ensure adherence to the regulatory guidelines on an ongoing basis, especially for ensuring fairness in loan pricing, the Reserve Bank has decided to lift the aforementioned restrictions placed on both Asirvad Micro Finance and DMI Finance with immediate effect,” the RBI said.
On October 17, the apex bank had issued directions to the aforementioned microfinance institutions to cease the business of sanctioning and disbursing loans. Same restrictions were slapped on two other entities – Navi Finserv and Arohan Financial Services. These restrictions were lifted on December 2 and January 3, respectively.
The regulator had said in October that the pricing policy of these NBFCs in terms of their weighted average lending rate and the interest spread charged over their cost of funds were found to be excessive and not in adherence with regulations.
The lenders had also violated rules for microfinance loans related to assessment of household income and borrowers’ ability to make monthly repayments, the RBI had said in October.