The Reserve Bank of India (RBI) has taken major action against Sachin Bansal’s Navi Finserv and three other non-banking financial companies (NBFCs). RBI ordered to stop approving and disbursing loans from close of business on October 21. The central bank took this step due to supervisory concerns including excessive pricing.
Action on which NBFCs
RBI said the action was taken against 4 NBFCs through detailed supervisory orders of the central bank. Under this, these instructions were issued to Bengaluru-based Navi Finserv Limited, New Delhi-based DMI Finance Private Limited, Kolkata-based Aarohan Financial Services Limited, Chennai-based Ashirwad Micro Finance Limited.
what is the reason
On the action against NBFCs and mutual fund institutions (MFIs), RBI said it has been taken due to the pricing policy of these companies due to the interest charged on their weighted average lending rate (WALR) and their cost of funds. The pricing of these companies has been found to be not in accordance with the regulations. The central bank said that it has also been found that these units are also not ensuring compliance with the Fair Practices Code issued by the RBI.
fine on sg finserv
Recently the Reserve Bank said that it has imposed a fine of Rs 28.30 lakh on SG Finserv Limited. The penalty has been imposed on the company for non-compliance with certain specific conditions relating to the certificate of registration. Let us tell you that SG Finserv was earlier known as Mungipa Securities.
The Reserve Bank also imposed a fine of Rs 14 lakh on Arunachal Pradesh Gramin Bank. Besides this, penalty has been imposed on three other co-operative banks for violation of certain norms. These banks are Zila Sahakari Kendriya Bank Maryadit, Bhind, Madhya Pradesh, The Urban Co-operative Bank Limited, Dharangaon, Maharashtra and Shri Kalahasti Co-operative Town Bank Limited, Andhra Pradesh.
