The Reserve Bank of India (RBI) has removed business restrictions imposed on Calcutta-based microfinance lender Arohan Financial Services Ltd (Arohan).

This comes after the banking regulator was satisfied by the remedial action taken by Arohan.

On October 17, 2024, the RBI had issued directions to Arohan to cease and desist from sanction and disbursal of new loans, effective from close of business as of October 21, 2024.

Following these directions, the company initiated remedial action and submitted its various compliances to the Reserve Bank.

“We are delighted to receive the RBI order on lifting the restrictions today. On behalf of our 23 lakh bottom-of- the-pyramid borrowers and 10,000 employees we thank the RBI with whom we worked very closely to understand, explain and make the necessary changes,” said Manoj Nambiar, managing director, Arohan Financial Services

The RBI had on October 17, 2024 also taken action against three other non-banking finance companies, which barred them from sanctioning or disbursing fresh loans.

These included Asirvad Micro Finance, DMI Finance and Navi Finserv. Last month, the RBI removed restrictions on Sachin Bansal led Navi Finserv.