RBI Lifts Restrictions on Asirvad Micro Finance, DMI Finance

Mumbai, Jan 8 (PTI) The Reserve Bank on Wednesday lifted the business restrictions placed on Chennai-based Asirvad Micro Finance and New Delhi-based DMI Finance with immediate effect.

In October last year, the central bank ordered four NBFCs to cease and desist from sanction and disbursal of loans, on material supervisory concerns, including usurious pricing.


Subsequently, Asirvad Micro Finance and DMI Finance companies initiated remedial action and submitted their various compliances to the Reserve Bank, the central bank said in a statement.

"Now, having satisfied itself based on 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...restrictions placed on both, Asirvad Micro Finance Limited and DMI Finance Private Limited, with immediate effect," it said.

Meanwhile, the business restrictions imposed on the two other NBFCs -- Navi Finserv and Arohan Financial Services -- have already been lifted.