India’s central bank ordered four non-bank lenders, including Navi Finserv and DMI Finance, to halt loans from October 21, citing excessive interest rates and regulatory breaches.

Earlier this month, in RBI monetary policy committee meeting, governor Shaktikanta Das issued a strong warning to non-banking lenders, especially microfinance institutions and housing finance companies, for aggressively chasing “growth at any cost” that could threaten the economy’s financial stability.

Navi Finserv, the digital lending platform of Flipkart founder Sachin Bansal, along with three other financial service providers -- Asirvad Micro Finance, Arohan Financial Services, and DMI Finance-- have been banned by the RBI from disbursing loans due to exorbitant lending rates.

The Reserve Bank of India has banned four NBFCs from issuing new loans starting October 21, 2024, citing excessive lending rates and non-compliance wi

The RBI has barred Navi, DMI, Asirvad, and Arohan from issuing new loans, citing excessive interest rates and non-compliance with regulatory norms.

The Reserve Bank on Thursday ordered Sachin Bansal's Navi Finserv and three other NBFCs to cease and desist from sanction and disbursal of loans effective from the close of business of October 21, on material supervisory concerns,