On January 8, the Reserve Bank of India (RBI) announced the immediate removal of supervisory restrictions previously placed on Asirvad Micro Finance Ltd, based in Chennai, and DMI Finance Private Ltd, headquartered in New Delhi. Asirvad Micro Finance serves as the microlending arm of Manappuram Finance.
According to an official press release, the RBI stated, “After reviewing the submissions made by the companies, and taking into account their revamped processes, systems, and commitment to maintaining compliance with regulatory guidelines—particularly in ensuring fairness in loan pricing—the Reserve Bank has decided to withdraw the restrictions imposed on both Asirvad Micro Finance Limited and DMI Finance Private Limited.”
The restrictions, initially implemented on October 17, 2024, prohibited the two companies from sanctioning and disbursing loans as of October 21, 2024.
Following remedial measures and submission of compliance reports, the companies demonstrated adherence to the required regulatory standards, leading to the lifting of the curbs.
Similarly, restrictions on two other non-banking financial companies (NBFCs)—Navi Finserv Pvt Ltd and Arohan Financial Services Ltd—were also lifted after these entities took corrective actions. The orders to lift these restrictions were issued on December 2, 2024, and January 3, 2025, respectively.