The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india has given a big relief to two microfinance banks Ashirvad Micro Finance Limited and DMI Finance Private Limited by removing the ban imposed on them from giving loans. This information was given in a circular issued on 8 January.
In the month of october last year, RBI took strict action against Ashirvad Micro Finance Limited, Arohan Financial services Limited, DMI Finance Private Limited, Navi Finserv Limited and banned the approval and distribution of new loans. This action was taken to recover higher interest from the loan takers. At that time, RBI said about strict action against NBFCs, "This decision is being taken on the basis of RBI's investigation, in which it was found that the average lending rate (WALR) of these companies and the interest charged on their cost of funds is found to be very high, which is a violation of the regulation."
Companies promised to follow the regulation
Now, issuing a press statement on january 8, the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india said, the companies have ensured compliance with the rules in their submitted documents, making appropriate improvements, especially giving loans at reasonable interest, so the Reserve bank has decided to lift the ban on loan approval and distribution on both Ashirvad Micro Finance Limited and DMI Finance Private Limited with immediate effect.
Manappuram Finance has a major stake in Ashirvad Micro Finance
Let us tell you that Manappuram Finance has a 95 percent stake in Ashirvad Micro Finance, one of the country's leading listed non-banking finance companies (NBFCs), while the remaining 5 percent stake is held by the founder of Ashirvad Micro Finance. After the RBI decision in october, SEBI gave a shock to Manappuram's subsidiary company Ashirvad Micro Finance and put its IPO on hold. The company's target was to raise Rs 1500 crore through this IPO. For this, the company had also submitted preliminary documents to SEBI in october 2023. Manappuram Finance had taken 71 percent stake in Ashirvad Micro Finance in 2015 and later in june 2022 it was increased to 95 percent.
click and follow Indiaherald WhatsApp channel