The Reserve Bank of India (RBI) ordered Navi Finserv Limited to stop sanctioning and disbursing loans from the close of business on October 21, 2024. The regulator cited concerns about pricing and other lending practices. The restriction was later lifted with immediate effect in December 2024, according to Navi Finserv’s FY2024–25 annual report, so the 2024 order should not be read as a current loan halt.
What did the RBI order Navi to do?
On October 17, 2024, the RBI issued directions under section 45L(1)(b) of the Reserve Bank of India Act, 1934, to Navi Finserv Limited and three other non-bank financial companies (NBFCs). The directions required them to “cease and desist from sanction and disbursal of loans” from close of business on October 21, 2024. The RBI said it had issued detailed supervisory orders to the companies. RBI announcement, October 17, 2024.
The named company was Navi Finserv Limited. The announcement did not direct every Navi-branded business or the entire Navi group to stop lending.
Why did the RBI impose the restriction?
The RBI said its concerns included pricing policies, including weighted average lending rates and interest spreads over cost of funds that it found excessive and inconsistent with applicable directions. It also listed deviations involving income recognition and asset classification that resulted in evergreening of loans, the conduct of gold-loan portfolios, required disclosures of interest rates and fees, and outsourcing of core financial services. These were the regulator’s stated grounds for its supervisory action, not findings about every loan or customer.
#1 Best Overall
Did the order cancel existing loans or end repayments?
No. The announced direction concerned new loan sanctions and disbursals. It did not say that existing loans were cancelled or that borrowers’ repayment obligations ended. The RBI release does not describe individual customer accounts or specify how any particular borrower was affected.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.When did Navi Finserv resume loan sanctions and disbursals?
Navi Finserv’s FY2024–25 annual report says the RBI lifted the restrictions with immediate effect after several rounds of interaction and after the regulator was satisfied with the company’s submissions and rectifications. The filing identifies a December 2, 2024 letter from the RBI as the communication lifting the restrictions. Navi Finserv FY2024–25 annual report filing.
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
At the time of the October 2024 action, Navi was reported as saying it was reviewing the directions and would work with the RBI to address the concerns, according to The Times of India’s October 18, 2024 report.
Quick Recap
Best Value
Rank #3
What borrowers should take from the announcement
- The RBI announced the direction on October 17, 2024; the restriction took effect at close of business on October 21.
- It applied to new loan sanctions and disbursals by Navi Finserv, not automatically to all Navi-branded businesses.
- The RBI’s announcement described regulatory concerns; it did not provide customer-specific findings or say existing loans were void.
- Navi Finserv’s annual report records that the restrictions were subsequently lifted with immediate effect in December 2024.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
Quick wins for a faster PC:
Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →
