Mumbai, Dec 2 (PTI) The Reserve Bank on Monday lifted the restrictions on sanction and disbursal of loans by Sachin Bansal's Navi Finserv with immediate effect.
On October 17 this year, the RBI had issued directions to Navi Finserv Limited, Bengaluru (and three other NBFCs) to cease and desist from sanction and disbursal of loans, effective from close of business of October 21, 2024.
The restrictions were based on material supervisory concerns observed in the pricing policy of these companies in terms of their Weighted Average Lending Rate (WALR) and the interest spread charged over their cost of funds, which are found to be excessive and not in adherence with the regulations
Subsequently, RBI on Monday said it had several rounds of interaction with Navi Finserv for rectification of deficiencies.
"Now, having satisfied itself based on company's submissions, and in view of adoption of revamped processes, systems, and the company's 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 aforementioned restrictions placed on Navi Finserv Limited with immediate effect," it said.
The other three NBFCs on which restrictions were imposed in October are: New Delhi-based DMI Finance Private Limited, Kolkata-based Arohan Financial Services Limited, and Chennai-based Asirvad Micro Finance Limited.
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