RBI lifts lending bans on Asirvad and DMI Finance after compliance reforms
The Reserve Bank of India (RBI) has removed lending restrictions on two major financial firms. Asirvad Micro Finance Limited and DMI Finance Private Limited can now resume loan approvals and disbursements with immediate effect. The decision follows months of regulatory scrutiny and corrective measures by both companies, including revised loan-pricing models and strengthened internal systems to align with RBI standards. The RBI first imposed restrictions on October 21, 2024, due to concerns over non-compliance with regulatory guidelines and excessively high loan pricing. Both firms faced sanctions due to violations in the microfinance sector, including risk management failures and unfair lending practices. With the restrictions now lifted, both companies have regained full lending capabilities, allowing them to restart loan sanctioning and disbursement activities without delay. The removal of restrictions marks the end of a regulatory review that began in late 2024, with both firms adjusting their frameworks to comply with RBI rules on fair lending and risk control.
