RBI lifts its supervisory restrictions on Sachin Bansal-led Navi Finserv Limited
Reserve Bank of India on Monday announced decision to remove its supervisory restrictions on Sachin Bansal's Navi Finserv Limited following several rounds of interaction with the company for rectification of deficiencies.
«RBI had several rounds of interaction with the company 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 afore-mentioned restrictions placed on Navi Finserv Limited, with immediate effect,» said RBI in the statement.
The central bank on October 17, 2024 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.
Besides Navi, the central bank had put similar restrictions on three other NBFCs — New Delhi-based DMI Finance Private Limited, Kolkata-based Arohan Financial Services Limited, and Chennai-based Asirvad Micro Finance Limited.
The central bank while imposing restrictions said that the “action is 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
