There is a growing interest in the speech community in developing Recurrent Neural Network Transducer (RNN-T) models for automatic speech recognition (ASR) applications. RNN-T is trained with a loss function that does not enforce temporal alignment of the training transcripts and audio. As a result, RNN-T models built with uni-directional long short term memory (LSTM) encoders tend to wait for longer spans of input audio, before streaming already decoded ASR tokens. In this work, we propose a modification to the RNN-T loss function and develop Alignment Restricted RNN-T (Ar-RNN-T) models, which utilize audio-text alignment information to guide the loss computation. We compare the proposed method with existing works, such as monotonic RNN-T, on LibriSpeech and in-house datasets. We show that the Ar-RNN-T loss provides a refined control to navigate the trade-offs between the token emission delays and the Word Error Rate (WER). The Ar-RNN-T models also improve downstream applications such as the ASR End-pointing by guaranteeing token emissions within any given range of latency. Moreover, the Ar-RNN-T loss allows for bigger batch sizes and 4 times higher throughput for our LSTM model architecture, enabling faster training and convergence on GPUs.