RBI lifts supervisory curbs on Asirvad Micro Finance, a Manappuram subsidiary, and DMI Finance

The Reserve Bank of India (RBI) on Wednesday lifted the supervisory restrictions on Chennai-based Asirvad Micro Finance Limited, a subsidiary of Manappuram Finance, and New Delhi-based DMI Finance Private Limited, citing compliance with remedial measures and adherence to regulatory guidelines.

The RBI noted that both NBFCs have since adopted revamped systems and processes, ensuring fairness in loan pricing and ongoing compliance with regulatory norms.

"Now, having satisfied itself based on companies’ submissions, and in view of their adoption of revamped processes, systems, and the companies’ 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 both, Asirvad Micro Finance Limited and DMI Finance Private Limited, with immediate effect," the central bank said.

Manappuram Finance had previously assured investors of its commitment to addressing the RBI’s concerns, with its board implementing corrective measures and pledging a "compliance-first" culture.

"The Board has reiterated its unwavering commitment to implement RBI’s direction in letter and spirit and monitor the corrective action in a time bound plan," it had said in a regulatory filing.

The RBI had taken similar action against two other NBFCs—Sachin Bansal’s Navi Finserv and Kolkata-based Arohan Financial Services—for pricing irregularities. Restrictions on these companies were lifted on December 2, 2024 and January 3, 2025, respectively.

Shares of Mannapuram Finance, which had plunged 15% after the RBI's restrictions, were trading at ₹180.41 apiece on Wednesday, 0.92% down from the previous close.