RBI Lifts Lending Restrictions on Asirvad Micro Finance and DMI Finance
The Reserve Bank of India (RBI) has lifted the restrictions imposed on Asirvad Micro Finance Limited and DMI Finance Private Limited, allowing them to resume loan sanctioning and disbursal operations immediately.
On October 21, 2024, the RBI had imposed sanctions on these two non-banking financial companies (NBFCs), prohibiting them from sanctioning and disbursing loans due to non-compliance with regulatory guidelines.
Following the RBI’s directive, both Asirvad Micro Finance and DMI Finance undertook corrective actions to address the regulatory concerns. They submitted compliance reports detailing the adoption of revamped processes and systems aimed at ensuring adherence to the regulatory guidelines, particularly concerning fairness in loan pricing.
Satisfied with the remedial measures and the companies’ commitment to ongoing compliance, the RBI has decided to lift the restrictions with immediate effect. This decision enables both NBFCs to resume their financial operations, including the sanctioning and disbursal of loans.
It’s noteworthy that similar restrictions imposed on Navi Finserv Pvt Ltd and Arohan Financial Services Limited in October 2024 were lifted earlier, on December 2, 2024, and January 3, 2025, respectively, following their compliance with regulatory guidelines.
| Why in News | Key Points |
|---|---|
| RBI lifts restrictions on Asirvad Micro Finance and DMI Finance | – Date of restriction imposition: October 2024 – Reason for restriction: Non-compliance with regulatory norms – Action taken by RBI: Lifting of restrictions in January 2025 after compliance measures – Corrective actions by companies: Revised processes and submitted compliance reports |
| Regulatory Authority: RBI | – Full Form: Reserve Bank of India – Role: Financial regulatory authority, overseeing NBFCs |
| Entities Involved | – Asirvad Micro Finance Limited – DMI Finance Private Limited |
| Other Relevant NBFC Actions | – Navi Finserv Pvt Ltd and Arohan Financial Services Limited also had restrictions lifted after compliance (December 2024 and January 2025, respectively) |
Solar eclipses have always fascinated people because they are rare and beautiful celestial events. In…
National News Election Commission Revamps EVM Ballot Paper Design The Election Commission (EC) has revamped…
Artificial Intelligence (AI) is growing very fast, and one of its most exciting parts is…
Fenugreek, commonly called methi, is a popular herb and spice in India, valued for both…
Karnataka, located in southern India, is a state known for its rich culture, historical landmarks…
India is a land full of diversity, where every state has something unique to offer.…
