The Reserve Bank of India (RBI) has superseded the board of Aviom India Housing Finance due to governance concerns and defaults in meeting payment obligations.

The central bank will start a resolution process of the housing finance company under the Insolvency and Bankruptcy rules, the RBI said today.

Ram Kumar, the former chief general manager of state-owned Punjab National Bank, has been appointed as the administrator of the New Delhi-based housing finance company.

The action has been taken basis recommendation of the National Housing Bank (NHB).

The RBI would also apply to the NCLT, New Delhi, for appointing the administrator as the insolvency resolution professional (IRP).

Aviom India Housing Finance, which  provides loans to low-income household women borrowers in semi-urban areas who do not have any formal income documentation, faced liquidity issues. In November, CRISIL downgraded its long-term rating on the non-convertible debentures of Aviom citing expected delays in interest payments.