Why in news The Reserve Bank of India (RBI) ordered four non-banking financial corporations (NBFCs) to stop approving and disbursing loans...
Why in news
The Reserve Bank of India (RBI) ordered four non-banking financial corporations (NBFCs) to stop approving and disbursing loans.
The NBFCs were charged with usurious pricing (excessively high interest rates) and other regulatory violations.
The companies affected include: Asirvad Micro Finance Ltd., Arohan Financial Services Ltd., DMI Finance Private Ltd., Navi Finserv Ltd.
The RBI cited concerns regarding the companies' pricing policies, particularly their weighted average lending rate (WALR) and interest spreads over funding costs.
The NBFCs also violated guidelines related to: Assessing household income, Considering borrowers' monthly repayment obligations for microfinance.
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