Restrictions Lifted on Arohan Financial Services: A New Chapter

The Reserve Bank has lifted restrictions on Arohan Financial Services, initially imposed due to supervisory concerns over loan pricing. The Kolkata-based NBFC took corrective measures and adhered to regulatory guidelines, leading to the removal of these restrictions. The Reserve Bank recognizes the company's efforts towards compliance.

The Reserve Bank has announced the lifting of restrictions on Arohan Financial Services Limited, a Kolkata-based non-banking financial company (NBFC). This decision, effective immediately, follows the company's efforts to comply with regulatory guidelines, ensuring fair loan pricing.

Last October, the central bank ordered Arohan Financial and three other NBFCs to halt loan sanctions and disbursals due to significant supervisory concerns, particularly regarding usurious pricing practices.

Arohan Financial responded by implementing corrective measures and submitting compliance documentation to the Reserve Bank. Satisfied with the company's revamped processes and commitment to regulatory adherence, the Reserve Bank has now decided to revoke the restrictions.

(With inputs from agencies.)