RBI removes restrictions on Arohan Financial Services

MUMBAI

The Reserve Bank of India (RBI) on Friday removed supervisory restrictions on Kolkata-based Arohan Financial Services Ltd. with immediate effect.

On October 17, 2024, the banking regulator had issued directions to Arohan Financial Services to cease and desist from sanction and disbursal of loans, effective from close of business as of October 21, 2024 on material supervisory concerns.

The RBI said subsequently the company initiated remedial action and submitted its various compliances.

“Now, having satisfied itself based on company’s submissions, and in view of their adoption of revamped processes, systems, and the company’s 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 Arohan FinancialServices, with immediate effect,” the RBI said in a circular.