Kolkata: The Reserve Bank of India has removed the lending restrictions on microfinance company Arohan Financial Services after it became satisfied with the company’s revamped processes as well as its commitment to adhere to the regulatory guidelines.
Arohan can resume business with immediate effect, RBI said Friday.
On October 17, last year, the regulator had barred Arohan, Asirvad Micro Finance and two other non-banks — Navi Finserv and DMI Finance — from lending due to “unfair and usurious practices” and non-adherence to the regulatory guidelines.
Subsequently, the company initiated remedial action and took efforts to comply with the regulations, the central bank said.
“Now, having satisfied itself based on company’s submissions, and in view of their adoption of revamped processes, systems, and the company’s commitment to ensure adherence to the regulatory guidelines on an ongoing basis, especially for ensuring fairness in the loan pricing, the Reserve Bank has decided to lift the restrictions placed on Arohan Financial Services with immediate effect,” RBI said.
Last month, RBI had also lifted the ban placed on Navi Finserv.
