The Reserve Bank of India (RBI) has lifted the restrictions on Navi Finserv, allowing the non-banking financial company (NBFC) to resume sanctioning and disbursing loans. These restrictions were initially imposed due to concerns over the company’s regulatory compliance and pricing policies. The lifting of the restrictions signals that Navi Finserv has made the necessary adjustments and addressed the RBI’s concerns.
In October, the RBI had instructed Navi Finserv, along with three other NBFCs, to halt loan approvals due to deficiencies in meeting regulatory guidelines. The other affected companies were DMI Finance, Asirvad Micro Finance, and Arohan Financial Services. While Navi Finserv has now been cleared to resume operations, the RBI has yet to lift restrictions for the other three companies.
According to an RBI statement, the decision to remove the restrictions was made after the central bank was “satisfied with the measures taken by Navi Finserv to ensure regulatory compliance.” This action underscores the critical importance of adhering to the regulatory standards that govern the financial sector.
Navi Finserv, founded in 2018 by Bansal and Ankit Agarwal, operates as an RBI-registered NBFC in the middle layer category, offering personal and home loans. Recently, the company completed a $24.5 million loan securitization transaction with Goldman Sachs (India) Finance Private Limited. In its financial performance for FY24, Navi Finserv reported a significant rise in revenue, from Rs 1,238 crore in FY23 to Rs 1,906 crore. Its net profit stood at Rs 668 crore, driven in part by gains from the sale of a subsidiary.
In addition to its core lending activities, Navi has become a prominent player in the UPI ecosystem. In October, it surpassed CRED to become the fourth-largest player in UPI by volume, further highlighting its rapid growth and market presence.
