RBI removes lending restrictions on microfinance company Arohan Financial Services
The Reserve Bank of India has removed the lending restrictions on microfinance company Arohan Financial Services after it became satisfied with the company’s revamped processes as well as its commitment to adhere to the regulatory guidelines.
On October 17, last year, the regulator had barred Arohan, Asirvad Micro Finance and two other non-banks — Navi Finserv and DMI Finance — from lending due to “unfair and usurious practices” and non-adherence to the regulatory guidelines.
Subsequently, the company initiated remedial action and took efforts to comply with the regulations, the central bank said.
