The Reserve Bank of India (RBI) has lifted the supervisory restrictions it had imposed on Navi Finserv Limited, allowing the Bengaluru-based non-banking financial company (NBFC) to resume loan sanctioning and disbursal operations. The ban, which came into effect on October 21, 2024, was imposed under Section 45L(1)(b) of the RBI Act, 1934, due to deficiencies in the company’s processes and adherence to regulatory guidelines.
Background:
The RBI’s action had restricted Navi Finserv, along with three other NBFCs, from sanctioning and disbursing loans as part of a crackdown on non-compliance with fair lending practices and loan pricing transparency. Navi Finserv worked closely with the regulator during this period to address these deficiencies.
Compliance Rectified:
The RBI stated that Navi Finserv has adopted revamped processes and systems, ensuring compliance with regulatory guidelines, particularly around fair loan pricing and customer-centric practices. Based on its review and interactions with the company, the RBI is now satisfied with Navi Finserv’s commitment to regulatory adherence.
This development allows Navi Finserv, which is part of Sachin Bansal-led Navi Group, to resume normal operations. The removal of restrictions is expected to provide relief to its business, which was significantly impacted during the ban period.
This step reflects the RBI’s proactive stance on ensuring regulatory compliance in the financial services sector while allowing companies to address issues and resume operations upon meeting necessary standards.
