Arohan Financial Services Ltd., a well-known shadow bank that serves financially underserved women in India, has decided to delay its initial public offering (IPO) due to the Reserve Bank of India's (RBI) crackdown on lending practices.

The RBI has instructed a group of shadow lenders, including microfinance institutions, to stop approving new loans, which has affected Arohan's IPO plans.

Arohan had planned to submit a proposal to the regulator last week to raise around $200 million through the IPO. However, the recent regulatory developments have caused Arohan to reconsider its timeline for going public.

This delay highlights the ongoing challenges faced by microfinance firms in the current regulatory environment.