Lending restrictions on NBFC Navi Finserv have been removed by RBI

Current Context: The Reserve Bank of India (RBI) removed lending restrictions on Navi Finserv on December 2, 2024.

• Initially, these restrictions were imposed on October 17, 2024, due to concerns over the company's excessive loan pricing and other regulatory non-compliance issues.
• Key Points:
• Restrictions Imposed: The RBI imposed lending restrictions on Navi Finserv to address issues such as high loan interest rates and failure to comply with regulatory norms.
• Compliance Measures: Navi Finserv was required to take corrective actions, including revamping its loan pricing strategy and ensuring full compliance with RBI guidelines.
• Lifting of Restrictions: After Navi Finserv demonstrated significant improvements in its processes and compliance standards, the RBI decided to lift the lending restrictions.
• Ongoing Adherence: Navi Finserv committed to maintaining adherence to regulatory guidelines to prevent future issues and ensure transparent and fair lending practices.

Question:

1 What was one of the primary reasons for the RBI imposing lending restrictions on Navi Finserv?

• A) Low loan interest rates
• B) Excessive loan pricing
• C) Lack of loan products
• D) Poor customer service

Answer: B) One of the primary reasons for the RBI imposing lending restrictions on Navi Finserv was concerns over the company's excessive loan pricing.