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RBI files application for insolvency proceedings against Aviom India Housing Finance

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  On Monday, the RBI superseded the board of Aviom India Housing Finance owing to governance concerns and defaults in meeting various payment obligations.

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The Reserve Bank of India (RBI) has initiated insolvency proceedings against Aviom India Housing Finance Pvt Ltd by filing an application with the Mumbai bench of the National Company Law Tribunal (NCLT). This action was taken due to Aviom's failure to meet its repayment obligations on loans from banks and financial institutions. Aviom, which provides housing finance primarily to low-income groups in rural and semi-urban areas, has been facing financial difficulties, leading to this legal step by the RBI. The move underscores the central bank's efforts to address and mitigate risks within the financial sector, particularly concerning non-performing assets.

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