The Indian central bank takes measures against high loan interest rates.

The Reserve Bank of India has decided to prohibit four shadow banks from approving new loans. This action comes against the backdrop of excessively high interest rates for which these financial institutions have been criticized. This measure underscores increased regulatory scrutiny in the lending sector in India. Among the affected institutions is DMI Finance, supported by the Japanese Mitsubishi UFJ Financial Group. Navi Finserv is also affected, backed by Sachin Bansal, known as the co-founder of Flipkart—an e-commerce platform now part of the Walmart empire. These developments indicate that Indian regulatory authorities are increasingly determined to reduce costs for borrowers and enhance transparency in the credit market.