RBI Lifts Loan Restrictions on Navi Finserv

The Reserve Bank of India has lifted its restrictions on Navi Finserv, allowing the company to resume loan sanctions and disbursements. Previously, RBI had imposed these restrictions due to concerns over excessive prices in their lending practices. The decision arrives after Navi assured regulatory compliance.

The Reserve Bank of India (RBI) has lifted the restrictions on Navi Finserv, a company led by co-founder Sachin Bansal, enabling it to resume its loan sanctioning and disbursal services immediately.

Earlier, on October 17, RBI directed Navi Finserv and three other non-banking financial companies (NBFCs) to halt their loan activities due to concerns about their pricing policies. These concerns revolved around the companies' Weighted Average Lending Rate (WALR) being excessively high, failing to comply with regulatory guidelines.

Following several rounds of discussions with Navi Finserv and the company's commitment to revamped pricing processes and adherence to regulations, RBI has now decided to lift the imposed restrictions. The decision is specific to Navi Finserv, while other affected NBFCs remain under scrutiny.

(With inputs from agencies.)