The RBI had issued a cease and desist order barring Navi and three other non-banking financial companies (NBFCs) to issue any loans post October 21
The apex bank said that it had several rounds of interactions with the startup to understand how it plans to rectify the deficiencies since before arriving at the decision
With this, the startup can now resume its loans operation with immediate effect
The Reserve Bank of India today (December 2) said that it has decided to lift the restrictions placed on Sachin Bansal-led Navi Finserv to sanction and disburse loans.
The RBI had issued a cease and desist order barring Navi and three other non-banking financial companies (NBFCs) to issue any loans post October 21. Its action was a result of excessive interest rates and non-compliance with its regulations.
Other concerns include irregularities in loan classification, outsourcing financial services, and inadequate disclosure of interest rates and fees.
The RBI said that it had several rounds of interactions with the startup to understand how it plans to rectify the deficiencies since before arriving at the decision.
“…Having satisfied itself based on company’s submissions, and in view of adoption of revamped processes, systems, and the company’s commitment to ensure adherence to the Regulatory Guidelines on an ongoing basis…the Reserve Bank has decided to lift the aforementioned restrictions placed on Navi Finserv Limited, with immediate effect,” the apex bank said in a statement.
(The story will be updated soon.)
