These four entities are Asirvad Microfinance, Arohan Financial Services (also an MFI), DMI Finance, which provides personal, consumption, and micro, small and medium enterprises loans, and Flipkart co-founder Sachin Bansal's Navi Finserv, which offers home and personal loans.
The ban will take effect on October 21 to "facilitate closure of transactions in the pipeline", the regulator said in a statement.
In the monetary policy statement on October 8, RBI Governor Shaktikanta Das cautioned NBFCs, including MFIs, about prioritising excessive equity returns. He expressed concern over exorbitant interest rates coupled with high processing fees and frivolous penalties.
"This action is based on material supervisory concerns observed in the pricing policy of these companies in terms of their weighted average lending rate (WALR) and the interest spread charged over their cost of funds, which are found to be excessive and not in adherence with the regulations," the RBI said while citing reason for its action on Thursday.
Bu hikaye Business Standard dergisinin October 18, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Business Standard dergisinin October 18, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Rlys goes back to 60-day advance booking window
Reverses 2015 order on 120-day advance booking for operational efficiency
IN A HEART BIT
How the India-UAE Bilateral Investment Treaty could quickly reboot investment pacts
Mitigate accounting, disclosure, governance risks with ESG funds
Environmental, Social and Governance (ESG) investing has gained significant traction as sustainable investing practices take centre stage.
Bajaj Auto slips 13% on weak festive demand
Near-term demand, margin woes weigh on company
China's stimulus measures fire up global investors
The recent stimulus measures announced by China have seen most analysts sit up and take notice.
‘50-bp cut in interest rate likely by March 2025’
Positive macros – lower inflation, high forex reserves, and favourable demand-supply dynamics for government bonds - make a strong case for rate cuts from December, says DEVANG SHAH, head of fixed income, Axis Mutual Fund. In an interview with Abhishek Kumar in Mumbai, Shah says this view may not hold true if commodity prices go up sharply. Edited excerpts:
Margin pressure clouds L&T Technology's near-term outlook
The Street wasn't upbeat with the second quarter results of L&T Technology Services (LTTS) and its shares dropped 3 per cent on Thursday. It reported an almost flat 3 per cent rise in consolidated net profit year-on-year (Y-o-Y).
Spl trading session for holdcos on Oct 28
Stock exchanges will conduct a special call auction for select investment holding companies (holdcos) on October 28 following the new framework introduced by the Securities and Exchange Board of India (Sebi) for price discovery.
FPI selling pulls indices down for third consecutive day
At ₹71,441 cr, outflows worst ever for a calendar month
HDFC Securities forays into wealth advisory business
HDFC Securities, the stock broking and research arm of HDFC Bank, on Thursday announced its entry in the wealth advisory space with the launch of HDFC Tru, targeting the burgeoning family offices and wealthy investors.