RBI Takes Major Action Against 4 NBFC-Micro Finance Companies, Loans To Be Halted After October 21 | Paisa Live

The Reserve Bank of India (RBI) has taken significant action against four non-banking financial companies (NBFCs) and microfinance institutions (MFIs). Effective October 21, 2024, the RBI has decided to impose a ban on loan approvals and disbursements for these NBFCs. The regulatory action was communicated to the affected entities under supervisory directions. The two microfinance companies affected are Chennai-based Ashirvad Microfinance Limited and Kolkata-based Financial Service Limited. Additionally, the New Delhi-based DMI Finance Private Limited and Bengaluru-based Navy Finserve Limited have also been restricted from loan approvals and disbursements. This decision follows the companies exceeding average lending rates and cost of fund spreads. The RBI noted that the MFIs failed to adhere to regulatory guidelines concerning domestic income and monthly repayment accumulation.