The central bank has blamed the four non-banking financial companies of ‘usurious pricing’ and non-adherence to regulatory guidelines.
The Reserve Bank of India on Thursday barred four non-banking financial companies from sanctioning and disbursing loans with effect from 21 October. These NBFCs include Bengaluru-based Navi Finserv, New Delhi-based DMI Finance, Chennai-based Asirvad Micro Finance, and Kolkata-based Arohan Financial Services.
“This action is based on material supervisory concerns observed in the Pricing Policy of these companies in terms of their Weighted Average Lending Rate (WALR) and the Interest Spread charged over their cost of funds, which are found to be excessive and not in adherence with the regulations,” said the central bank in a statement.
Apart from what …
Sethu writes on all things technology at The Morning Context. He previously worked as a senior sub-editor at Indian Express.
Writer
sethu@mailtmc.com
Kochi