RBI lifts restrictions on Asirwad Microfinance, DMI Finance

The Reserve Bank of India (RBI) announced on Wednesday that it has lifted the restrictions previously imposed on Asirwad Microfinance and DMI Finance.

These bans, initially enforced on October 17, were due to significant supervisory concerns related to the companies' pricing policies. Specifically, the RBI had raised issues regarding their Weighted Average Lending Rate (WALR) and the interest spreads charged over their cost of funds, which were found to be excessive and not in compliance with regulatory norms.

In response to the RBI's action, both Non-Banking Finance Companies (NBFCs) took corrective measures and submitted compliance reports to address these concerns. After reviewing their improved processes, systems, and renewed commitment to regulatory adherence—particularly regarding fairness in loan pricing—the RBI has now deemed these measures satisfactory.

Consequently, the restrictions have been lifted, according to a statement from the central bank.

Earlier, the RBI had imposed similar bans on Bengaluru-based Navi Finserv and Kolkata-based Arohan Financial Services. These restrictions were lifted on December 2, 2024, and January 3, 2025, respectively, after the companies completed the required remedial actions.​

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