RBI Restricts Four NBFCs from Issuing New Loans Due to Violations

The Reserve Bank of India (RBI) has ordered four non-banking finance companies (NBFCs) to stop issuing new loans after 21 October 2024. These companies were found guilty of violating several regulations, including charging excessive interest rates, failing to assess borrowers' incomes, and issuing ever-greening loans. Additionally, there were issues related to gold loan portfolios and lack of transparency on interest rates and fees. While the NBFCs can continue servicing existing customers, they must fix these violations to resume new loan disbursements, according to the RBI's directive.

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