The lifting of restrictions followed submissions made by the company and its pledge to strengthen recovery practices and outsourcing arrangements, while tightening the process of onboarding third-party agents and strengthening its accountability framework, the non-bank lender said in a regulatory filing.

The RBI action in September, which cited "material supervisory concerns", had come after reports of a 27-year-old pregnant woman being crushed to death trying to stop a loan recovery agent, working on behalf of MMFSL, from seizing her father's tractor over loan dues.

MMFSL shares had plunged over 20% following the order in September, before recouping those losses by December.

(Reporting by Chris Thomas in Bengaluru; Editing by Dhanya Ann Thoppil)