RBI removes restrictions on Arohan Financial Services

The RBI has lifted restrictions on Arohan Financial Services, allowing the company to resume its operations fully. The restrictions had been imposed earlier due to concerns over non-compliance with regulatory requirements. Arohan, a microfinance institution, has now complied with the RBI's conditions, and the lifting of restrictions is expected to bolster its position in the micro-lending sector. The move highlights the RBI's approach of promoting responsible lending practices while ensuring that non-compliant institutions improve their operations. Arohan’s reinstatement is expected to strengthen its financial position and increase its ability to serve underserved communities.