Navi Finserv, a non-banking financial company (NBFC) owned by Sachin Bansal, has been directed by the Reserve Bank of India (RBI) to cease all loan disbursals, effective October 21, 2024. This order comes as part of regulatory action taken against the company for non-compliance with several guidelines set by the RBI.
Navi Finserv is a subsidiary of Navi Technologies, which was founded by Bansal, who also serves as the chairman of the parent company. Navi Technologies has grown rapidly in the fintech space, providing personal loans, health insurance, and microfinance services.
The RBI’s order is linked to concerns over excessive interest rates and non-compliance with rules around lending practices, including violations in Weighted Average Lending Rate (WALR), disclosure norms, and interest spread policies. Despite this, the company can still service existing loans and conduct recovery processes, but no new loans can be disbursed until the RBI lifts the restrictions.
This development comes as a significant blow to Navi Finserv’s operations, and it will be closely monitored for further regulatory compliance in the coming months.
