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RBI Supersedes Aviom India Housing Finance Board Over Governance Concerns

-By ArdorComm News Network

The Reserve Bank of India (RBI) announced on Monday that it has superseded the board of Aviom India Housing Finance due to governance issues and defaults in fulfilling payment obligations. The central bank will initiate the resolution process for the housing finance company under the Insolvency and Bankruptcy rules.

Ram Kumar, former Chief General Manager of Punjab National Bank, has been appointed as the administrator to oversee the resolution proceedings.

Aviom India Housing Finance primarily caters to low-income households in semi-urban areas, offering loans to women borrowers who lack formal income documentation. The company’s focus on financially underserved segments has faced challenges in recent months, including liquidity constraints and delayed payments.

In November 2024, CRISIL downgraded the company’s long-term rating on its bank facilities and non-convertible debentures, citing liquidity issues and expected delays in interest payments. The downgrade highlighted growing concerns about the company’s ability to meet its financial obligations.

The RBI’s decision to supersede the board underscores its commitment to maintaining financial stability and addressing governance lapses in the financial sector.

Source: Economic Times

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