India's central bank said on Monday it has removed restrictions it had imposed on non-banking finance company (NBFC) Navi Finserv against any fresh loan sanctions and disbursals with immediate effect.

The Reserve Bank of India (RBI) startled many by removing lending limits on Navi Finserv Ltd, a non-banking financial company (NBFC) that Sachin Bansal, a co-founder of Flipkart, created.

The Reserve Bank of India lifted the ban imposed on Sachin Bansal-led non-banking financial company (NBFC) Navi Finserv Limited on Monday, citing its satisfaction with company submissions and assurance of ensuring fairness in loan pricing.

The Reserve Bank of India lifted restrictions on Navi Finserv. This decision follows the company's rectification of deficiencies after several rounds of interaction with the RBI. Navi Finserv can now resume loan sanctioning and disbursement operations.

In a statement, Navi Finserv said that it has worked to address identified deficiencies, and revamp its processes and systems, to the satisfaction of the RBI.

Following the imposition of restrictions on Navi, the lender cancelled a scheduled fund raising activity of Rs 100 crore. Rating agency CRISIL had also put Navi's ratings on "rating watch"

The RBI has lifted the restrictions on Navi Finserv's loan sanctioning and disbursal, following improvements in its pricing policy and adherence to regulatory guidelines. The restrictions, imposed in October due to concerns over excessive lending rates,