Reserve Bank Lifts Financial Restrictions on Key Firms

The Reserve Bank has removed business restrictions on Asirvad Micro Finance and DMI Finance after the firms addressed supervisory concerns, including unfair loan pricing. The companies showed compliance and revamped processes, leading the bank to restore their regular operations.

In a significant financial move, the Reserve Bank announced the lifting of business restrictions on Chennai-based Asirvad Micro Finance and New Delhi-based DMI Finance.

Last October, the central bank had imposed restrictions on four NBFCs due to material supervisory concerns, predominantly related to exorbitant loan pricing.

After overseeing remedial actions and compliance submissions made by affected companies, the Reserve Bank deemed the issues resolved, allowing the resumption of normal operations for Asirvad Micro Finance and DMI Finance.

(With inputs from agencies.)