More Stories

Informist, Monday, Dec. 2, 2024

--RBI: Lifted lending restrictions on Navi Finserv with immediate effect 

--CONTEXT: RBI told Navi Finserv on Oct 17 to cease loan sanction, disbursal 

MUMBAI – The Reserve Bank of India has lifted the ban on Bengaluru-based Navi Finserv Ltd. from sanctioning and disbursing loans with immediate effect, the regulator said in a press release on Monday. 

On Oct. 17, the RBI had issued directions to four non-banking finance companies, including Navi Finserv, to cease and desist from sanctioning and disbursing loans on supervisory concerns that the weighted average lending rate and the interest spread charged over the cost of funds were found to be excessive and not in adherence with the regulations. In addition, the non-bank lenders were not following regulatory guidelines on assessment of household income and consideration of existing or proposed monthly repayment obligations in respect of their microfinance loans, the regulator had said. 

"Now, having satisfied itself based on the 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 Ltd., with immediate effect," the release said. End

Reported by Christina Titus 

Edited by Saji George Titus

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.