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) |
India has many cities that are famous for their unique industries, and some of them…
Some deserts are extremely hot, but some remain cold throughout the year. These cold deserts…
In today’s world, news media plays a very important role in sharing information quickly and…
PNB Housing Finance has announced the appointment of Ajai Kumar Shukla as its new Managing…
In a major push towards deepening financial inclusion, the Department of Posts (DoP) and BSE,…
India’s retail inflation, measured by the Consumer Price Index (CPI), increased modestly to 0.71% in…