RBI instructs Bajaj Finance to stop loan products ‘eCOM’ and ‘Insta EMI’

16 Nov 2023 , 10:43 AM

The Reserve Bank of India has ordered Bajaj Finance Limited to halt the authorization and disbursement of loans under two of its lending products – ‘eCOM’ and ‘Insta EMI Card’ – with immediate effect since the non-banking financial business failed to meet certain standards.

This action is necessary due to the company’s non-compliance with the existing provisions of the Reserve Bank of India’s Digital lending guidelines, specifically the non-issuance of Key Fact Statements to borrowers under these two lending products and deficiencies in the Key Fact Statements issued in respect of other digital loans sanctioned by the company, the central bank said on Wednesday.

The action would be revisited if Bajaj Finance has corrected the shortcomings to the satisfaction of the RBI, according to the central bank.

The RBI has targeted various firms in the banking and financial services industries in recent years for noncompliance with regulations, notably on the digital front.

After several data centre failures, the RBI directed private sector banking heavyweight HDFC Bank to discontinue new activities targeted at establishing digital companies and to stop accepting new credit card users in December 2020.

At around 10.41 AM, Bajaj Finance was trading 0.51% higher at Rs 7,261.30 per piece, against the previous close of Rs 7.224.30 on NSE. 

For feedback and suggestions, write to us at [e-mail]