Recorded RBI impact
Lifted
Action lifted · Lifted / withdrawn
Published by RBI
3 Jan 2025
Case Brief
The Reserve Bank of India has withdrawn the supervisory restriction previously placed on Arohan Financial Services Limited, Kolkata. On October 17, 2024, RBI had directed the company under Section 45L(1)(b) to cease and desist from sanction and disbursal of loans, effective from close of business on October 21, 2024. After receiving the company’s remedial submissions and noting its revamped processes, systems, and commitment to comply with regulatory guidelines on an ongoing basis, especially around fairness in loan pricing, RBI decided to lift the restriction immediately.
Why RBI Acted
The RBI had earlier issued directions under Section 45L(1)(b) of the RBI Act, 1934 requiring Arohan Financial Services Limited, Kolkata, to cease and desist from sanction and disbursal of loans, effective close of business on October 21, 2024. After the company initiated remedial action, submitted compliances, and demonstrated adoption of revamped processes and systems, the RBI said it was satisfied and lifted the restrictions with immediate effect. The release specifically notes the company’s commitment to ongoing adherence to regulatory guidelines, particularly fairness in loan pricing.
Operating Impact
Arohan Financial Services Limited may resume sanctioning and disbursing loans without the earlier RBI-imposed ban. Borrowers and the company’s lending operations are no longer subject to that specific supervisory restriction, though the company remains expected to maintain compliance with RBI’s regulatory guidelines going forward.
Regulatory Basis
- Section 45L(1)(b) of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- Lifted
- Order Date
- 17 Oct 2024
- Effective From
- 21 Oct 2024
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC