RBI Lifts Ban on Asirvad and DMI Finance: Microfinance Institutions Back in Business
In a significant move, the Reserve Bank of India (RBI) has lifted the restrictions imposed on Asirvad and DMI Finance, allowing these microfinance institutions to resume their lending operations. The decision comes after the apex bank had issued directions on October 17, directing the institutions to halt the business of sanctioning and disbursing loans. This development is expected to provide relief to the microfinance sector, which has been facing challenges in recent times. With the restrictions lifted, Asirvad and DMI Finance can now focus on providing financial services to their customers, including micro loans and other credit facilities. The RBI's decision is seen as a positive step towards promoting financial inclusion and supporting the growth of the microfinance industry in India, which is a key sector for economic development and poverty alleviation. The microfinance institutions will now be able to cater to the financial needs of low-income households and small businesses, thereby contributing to the overall growth of the economy. Key players in the microfinance sector, including non-banking financial companies (NBFCs) and microfinance companies, are expected to benefit from this decision.
