In a recent development, the Reserve Bank of India (RBI) has directed Bajaj Finance Ltd, a subsidiary of Bajaj Finserv Ltd, to cease providing loans under its “eCOM and Insta EMI Card” products. The central bank alleges that Bajaj Finance violated digital lending regulations.
According to the RBI’s statement today, the decision was made due to the company’s non-compliance with digital lending guidelines, specifically the failure to issue key fact statements to borrowers for the mentioned lending products. The RBI points out deficiencies in key fact statements related to other digital loans sanctioned by Bajaj Finance.
Yogesh Dayal, Chief General Manager of RBI, stated that this action is taken until Bajaj Finance addresses the identified issues. The RBI plans to review its decision following the correction of these flaws.
Bajaj Finance, boasting 63 million customers according to its website, is an RBI-registered deposit-taking non-banking financial company (NBFC). It operates as an ‘NBFC-Investment and Credit Company,’ facilitating lending and deposits across various sectors, including retail, small and medium enterprises, and commercial customers.
