RBI walks the talk: NBFCs should cut usurious interest rates, high fees now

The NBFCs, which have been punished or are likely to be punished, should bring down the usurious interest rates, high fees and penalties without losing time

The idiom, “All bark and no bite”, doesn’t seem to have a place in the Indian banking regulator’s lexicon.

Just about a week after giving a stern warning to errant non-banking financial companies (NBFCs), the Reserve Bank of India (RBI) last week  issued an order directing four of them to cease and desist from sanctioning and disbursing fresh loans.

Asirvad Micro Finance Ltd, Arohan Financial Services Ltd, DMI Finance Pvt Ltd and Navi Finserv Ltd form this quartet.

“Usurious pricing” apart, these NBFCs were found to be not complying with regulatory guidelines on the assessment of household income and the