Why did the Reserve Bank of India (RBI) impose business restrictions on four non-banking finance companies (NBFCs), including Aisvard Micro Finance Ltd and Navi Finserv Ltd, in October 2024?

Non-compliance with loan recovery practices
High levels of non-performing assets (NPAs)
Excessive interest rates and pricing policy violations
Failure to maintain adequate capital reserves
Violation of anti-money laundering guidelines

Correct answer: Excessive interest rates and pricing policy violations

Solution

RBI imposed restrictions because the NBFCs were found to have charged excessive interest rates and violated pricing-related norms. The action was a supervisory measure to protect borrowers and ensure fair lending practices.

Related IBPS PO General Awareness questions

Statement: In December 2024, the Indian government announced measures to achieve a GDP growth target of 6.5% to 7% for the current fiscal year. This decision followed slower-than-expected growth in the July-September quarter, attributed to weaker manufacturing and consumption sectors. The government plans to boost infrastructure spending and increase incentives for electric vehicle manufacturers to stimulate economic growth. Conclusions: I. The Indian government is proactively addressing the economic slowdown by implementing strategic measures. II. Enhancing infrastructure spending is expected to positively impact India's GDP growth. III. The slowdown in the July-September quarter was solely due to external global factors. Which of the above conclusions logically follows from the statement?
I. India should increase diplomatic engagements with China to build mutual trust and ensure the effective implementation of the agreement. II. India should enhance its military presence along the LAC to deter any potential aggression from China. III. India should seek mediation from international organizations to monitor and enforce the border agreement. Which of the above courses of action should India pursue to effectively address the ongoing challenges along the LAC?
Statement: In June 2024, controversies arose over the NEET-UG exam due to alleged question paper leaks and irregularities in results. While the National Testing Agency (NTA) initially denied the claims, it later formed a committee to investigate. The Supreme Court ordered a re-examination for some candidates, highlighting the need for transparency. Based on the above statement, which of the following can be inferred? I. The integrity of the NEET-UG examination was questioned due to alleged irregularities. II. The NTA acknowledged the possibility of errors in the examination process. III. The Supreme Court mandated a complete cancellation of the NEET-UG examination.
In the question below, two statements are provided. Examine these statements carefully and determine whether there is a cause-and-effect relationship between them. Choose your answer from the options provided. Statements: I. The Election Commission of India reported a record voter turnout of 64.2 crore people in the 2024 Lok Sabha elections. II. The Election Commission implemented extensive voter awareness campaigns across the country in the lead-up to the 2024 general elections.
The government recently extended the benefits under the Remission of Duties and Taxes on Exported Products (RODTEP) scheme for exports made from domestic tariff area (DTA) units. Till which date has the scheme been extended?
The 80th anniversary of the D-Day landings was marked on June 6, 2024, with veterans and world leaders gathering in Normandy. Normandy is located in which country?

⚔️ Practice IBPS PO General Awareness free + battle 1v1 →