RBI lifts supervisory restrictions imposed on Asirvad Micro Finance and DMI Finance

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The Reserve Bank of India (RBI) has lifted supervisory restrictions on Chennai-based Asirvad Micro Finance Ltd and New Delhi-based DMI Finance Private Ltd.

The Central bank had directed the aforementioned non-banking finance companies (NBFCs) to cease and desist from sanction and disbursal of loans, effective from close of business as of October 21, 2024.

Subsequently, the companies initiated remedial action and submitted their various compliances.

“Now, having satisfied itself based on the companies’ submissions, and in view of their adoption of revamped processes, systems, and the companies’ 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 both, Asirvad Micro Finance Ltd and DMI Finance Private Ltd, with immediate effect,” per a RBI statement.

RBI noted that the business restrictions that were imposed on two other NBFCs (as per orders dated October 17, 2024) – Navi Finserv Pvt Ltd and Arohan Financial Services Ltd – have been lifted per its orders dated December 2, 2024 and January 3, 2025, respectively.