RBI Lifts Restrictions On Religare Finvest After Seven Years Under Corrective Action Plan
The development is a crucial boost for Religare Enterprises as it seeks to revive its lending business and restore credibility in India's shadow banking sector after years of regulatory scrutiny.
The Reserve Bank of India withdrew on Wednesday all restrictions placed on Religare Finvest Ltd. under the corrective action plan, marking the end of a more than seven-year-long regulatory curb.
RFL, a wholly owned subsidiary of Religare Enterprises Ltd., received a letter from the RBI about lifting of the curbs with immediate effect, according to an exchange filing by REL.
The RBI had originally placed the company under a corrective action plan on Jan. 18, 2018, citing irregularities discovered during its inspection of its financials as of March 31, 2017.
In its latest letter, the central bank acknowledged the company’s compliance with all the conditions set under these restrictions, including significant governance reforms. "There has also been a change in management and directors of the company," the RBI said, adding that it had decided to withdraw the conditions imposed.
The withdrawal comes after a series of correspondences between the company and RBI — including compliance updates from the company dated July 12, 2023, Feb. 12, 2024, March 24, 2025, and May 28, 2025.
While RFL is now free from these restrictions, the RBI has reminded the company to ensure ongoing compliance with all prudential norms, the filing stated.
The development is a crucial boost for REL as it seeks to revive its lending business and restore credibility in India's shadow banking sector after years of regulatory scrutiny and corporate misgovernance under its previous promoters.
