Asirvad Micro Finance, DMI Allowed to Resume Loan Sanction by RBI

On October 17, 2024, the Reserve Bank of India had, in exercise of its powers  under Section 45L(1)(b) of the Reserve Bank of India Act, 1934, issued Directions to the following NBFCs: 

To cease and desist from sanction and disbursal of loans, effective from close of  business as of October 21, 2024. 

Subsequently, the above-mentioned companies initiated remedial action and  submitted their various compliances to the Reserve Bank. 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 the  loan pricing, the Reserve Bank has decided to lift the afore-mentioned restrictions  placed on both, Asirvad Micro Finance Limited and DMI Finance Private Limited,  with immediate effect. 

 The business restrictions that were imposed on two other NBFCs vide Reserve  Bank’s orders dated October 17, 2024, viz. Navi Finserv Pvt Ltd and Arohan  Financial Services Limited have been lifted vide our orders dated December 2, 2024 and January 3, 2025, respectively.