RBI Lifts Loan Disbursement Ban On Asirvad Micro Finance And DMI Finance

The Reserve Bank of India (RBI) removed the business restrictions imposed on Asirvad Micro Finance Limited and DMI Finance Private Limited on January 09, 2025. The restrictions, effective from October 21, 2024, barred the companies from sanctioning and disbursing loans due to non-compliance with regulatory guidelines.

Asirvad is a microfinance institution based in Chennai, and DMI Finance, an investment and credit company in New Delhi, took corrective actions after the RBI’s directive. The companies submitted compliance reports outlining improvements to their processes and systems, ensuring fair loan pricing and adherence to regulatory standards. After reviewing the changes, the RBI decided to lift the sanctions with immediate effect.