ARTICLE · 22 OCTOBER 2024

AKP Banking & Finance Digest- October 21, 2024

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The Reserve Bank of India ("RBI") has directed four Non-Banking Financial Companies ("NBFCs"), including two Microfinance Institutions (MFIs)...

IndiaFinance and Banking

1. Regulatory Updates

1.1. India

1.1.1. RBI imposes loan sanction restrictions on certain NBFCs

The Reserve Bank of India ("RBI") has directed four Non-Banking Financial Companies ("NBFCs"), including two Microfinance Institutions (MFIs), to cease loan sanction and disbursement activities starting October 21, 2024. This action, based on supervisory concerns, highlights violations related to excessive lending rates, improper household income assessments, and deviations from regulatory guidelines. The affected NBFCs—Asirvad Micro Finance Limited, Arohan Financial Services Limited, DMI Finance Private Limited, and Navi Finserv Limited—are required to address these issues to resume normal operations. RBI

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