India’s Navi Finserv now allowed to sanction, disburse loans

The central bank said that it is satisfied with Navi Finserv’s revamped processes and systems.

The Reserve Bank of India (RBI) has lifted the supervisory restrictions of Navi Finserv Limited, Bengaluru, an e-commerce platform.

Navi Finserv will be able to sanction and disburse new loans, effective 2 December 2024.

RBI said that it held several rounds of discussions with the company to rectify its deficiencies, and is satisfied with the company’s changes.

“Now, having satisfied itself based on company’s submissions, and in view of adoption of revamped processes, systems, and the company’s commitment to ensure adherence to the Regulatory Guidelines on an ongoing basis, especially for ensuring fairness in the loan pricing, the Reserve Bank has decided to lift the afore-mentioned restrictions placed on Navi Finserv Limited, with immediate effect,” the RBI said in a statement posted on its website.

On 17 October 2024, the RBI had ordered Navi Finserv and three other non-bank financial corporations (NBFCs), to cease and desist from sanction and disbursal of loans, effective from close of business of 21 October 21.