MUMBAI: Within a fortnight off issuing a stern warning and asking to them to behave, the RBI on Thursday took stringent regulatory action against four non-bank lenders and a micro finance player, citing material, supervisory breaches, and has asked them to cease and desist from sanctioning and disbursing loans effective October 21.
The lenders are the Chennai-based micro lender Asirvad Micro Finance, Kolkata- based micro lender Arohan Financial Services, and Delhi-based non-bank lender DMI Finance, and the Bengaluru-headquartered non-bank lender Navi Finserv, the central bank said in a notification Thursday.
Announcing the monetary policy on October 9, governor Shaktikanta Das had asked NBFCs to follow the ‘compliance first’ culture and also to behave. The RBI has been repeatedly flagging NBFC, MFIs and gold loan players in the past and has brought more or less complete parity in their regulations on par with commercial banks. Das warned them on October 9 when he had asked them to follow a ‘compliance first culture’ and has advised them to “self correct,” else warning that the heavy hand of the regulator will be raised.