The Reserve Bank of India (RBI) has banned four NBFCs, including Sachin Bansal’s Navi Finserv, from issuing new loans starting October 21, 2024.
This decision comes after concerns over excessive lending rates and non-compliance with regulations. The RBI found that the companies charged high interest spreads beyond acceptable limits. Navi and the other companies can still serve their existing customers and manage collections, but no new loans can be approved. Navi stated that they are working closely with the RBI to address these concerns.