The Reserve Bank of India Ends Regulatory Curb on Religare Finvest Ltd.
The Reserve Bank of India announced the withdrawal of all restrictions imposed on Religare Finvest Ltd., signaling the conclusion of a more than seven-year-long regulatory curb.
Background
Religare Finvest Ltd. (RFL), a subsidiary of Religare Enterprises Ltd., received notification from the RBI regarding the immediate lifting of the regulatory restrictions. This decision follows the initial placement of RFL under a corrective action plan by the RBI on January 18, 2018, in response to financial irregularities identified during an inspection in March 2017.
Compliance and Reforms
The recent communication from the central bank commended RFL for meeting all conditions stipulated under the corrective action plan, which included implementing significant governance reforms. The RBI noted the changes in both management and board of directors within the company and subsequently lifted the imposed restrictions.
Conclusion
Following several interactions between RFL and RBI, which included compliance updates in July 2023, February 2024, March 2025, and May 2025, the RBI decided to withdraw the restrictions on RFL. However, the RBI emphasized the importance of continued adherence to prudential norms moving forward, as mentioned in the filing.
This development serves as a pivotal moment for Religare Enterprises Ltd. as it aims to rejuvenate its lending operations and enhance credibility within India’s shadow banking industry after facing regulatory scrutiny and governance challenges under previous promoters.
