India's central bank said on Monday it has removed restrictions it had imposed on non-banking finance company (NBFC) Navi Finserv against any fresh loan sanctions and disbursals with immediate effect.

The Reserve Bank of India (RBI) startled many by removing lending limits on Navi Finserv Ltd, a non-banking financial company (NBFC) that Sachin Bansal, a co-founder of Flipkart, created.

The RBI’s decision to lift the restrictions follows a series of interactions with Navi Finserv wherein the NBFC committed to implementing revamped processes and systems to ensure adherence to regulatory guidelines.

The Reserve Bank of India on Monday lifted the restriction that it had earlier announced on Navi Finserv Limited, which is a non-banking finance company (NBFC). Sachin Bansal-led NBFC, made several reforms in its operations as well as regulatory norms which is why the central bank has announced the upliftment of said ban.

The Reserve Bank of India removed the restrictions on Navi Finserv's loan sanctions and disbursals. Initially, the restrictions were due to concerns about excessive interest rates. Following several adjustments and reforms by Navi Finserv,

Following the imposition of restrictions on Navi, the lender cancelled a scheduled fund raising activity of Rs 100 crore. Rating agency CRISIL had also put Navi's ratings on "rating watch"

The Reserve Bank of India has lifted restrictions on Navi Finserv, allowing the company to resume loan disbursals after addressing concerns over its lending practices. The decision follows several rounds of interaction between the RBI and Navi Finserv.

The RBI said that it has decided to lift the restrictions placed on Sachin Bansal-led Navi Finserv to sanction and disburse loans

In a statement, Navi Finserv said that it has worked to address identified deficiencies, and revamp its processes and systems, to the satisfaction of the RBI.

The Reserve Bank of India lifted the ban imposed on Sachin Bansal-led non-banking financial company (NBFC) Navi Finserv Limited on Monday.