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India Central Bank Halts Navi Loans

India’s central bank told four non-bank lenders, such as Navi Finserv and DMI Finance, to stop lending money from October 21 because of high interest rates and rules that were not followed

According to the Reserve Bank of India (PDF), the firms violated regulations regarding asset classification, income assessment, and pricing. It was further stated that this action was taken in response to months of warnings regarding responsible lending practices. The companies that have been impacted may continue to provide services to their current customers; however, they must take corrective action to resume lending to new customers.

DMI Finance collaborates with numerous entrepreneurs and large technology companies, such as Google, to provide loans to their clients.

The announcement is also the most recent setback for Navi, a Bengaluru-based startup established by Sachin Bansal, a co-founder of Flipkart. The central bank previously denied Navi’s application for a banking license.

The new order was issued when Navi discussed securing its initial external funding with investors, as TechCrunch reported.

James Emmanuel

James is a Computer Science student with a robust foundation in tech and a skilled DevOps engineer. His technical expertise extends to his role as a news reporter at Protechbro, where he specializes in crafting well-informed, technical content that highlights the latest trends and innovations in technology.

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