RBI fines Asirvad Micro Finance INR 620,000 for not complying with norms
This story was originally published at 19:47 IST on 21 February 2025
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NEW DELHI – The Reserve Bank of India on Friday said it had imposed a fine of INR 620,000 on Asirvad Micro Finance Ltd. after a statutory inspection of the lender's financial position as at the end of 2022-23 (Apr-Mar) showed it had not complied with certain norms of the central bank.
According to the central bank, Asirvad Micro Finance--a subsidiary of Manappuram Finance--failed to report the household income of certain borrowers to credit information companies, did not provide factsheets to certain gold loan customers, and did not establish a system of auto-escalation of all complaints that were partly or wholly rejected by its internal grievance redress mechanism to the Internal Ombudsman for a final decision.
This is not the first time that Asirvad Micro Finance has fallen foul of the central bank's regulations. Back in October, the RBI had barred the microfinance lender from giving new loans after concerns emerged over its loan pricing policy, among other issues. The business restrictions were removed in January following remedial action by the lender.
On the National Stock Exchange, shares of Manappuram Finance closed 2% lower at INR 201.32 on Friday. End
Reported by Siddharth Upasani
Edited by Ashish Shirke
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