RBI orders Bajaj Finance to stop lending under eCOM, Insta EMI Card products
NEW DELHI, NOV 15 : The Reserve Bank of India (RBI) on Wednesday directed Bajaj Finance to immediately stop sanction and disbursal of loans under its ‘eCOM’ and ‘Insta EMI Card’ products.
“The Reserve Bank of India has today, in exercise of its powers under section 45L(1)(b) of the Reserve Bank of India Act, 1934, has directed Bajaj Finance Ltd. (“the company”) to stop sanction and disbursal of loans under its two lending products ‘eCOM’ and ‘Insta EMI Card’, with immediate effect,” the central bank said.
The decision results from the company’s non-compliance with the digital lending guidelines, specifically the omission of Key Fact Statements for borrowers and deficiencies in those issued for other digital loans.
“This action is necessitated due to non-adherence of the company to the extant provisions of Digital lending guidelines of Reserve Bank of India, particularly non-issuance of Key Fact Statements to the borrowers under these two lending products and the deficiencies in the Key Fact Statements issued in respect of other digital loans sanctioned by the company,” the RBI noted.
Once these issues are addressed to the RBI’s satisfaction, the supervisory restrictions will be reconsidered. “These supervisory restrictions will be “reviewed upon the rectification of the said deficiencies to the satisfaction of RBI,” it said.
While the RBI has directed the NBFC to stop sanctioning and disbursing new loans to customers, it is unlikely to impact existing customers. However, the company is yet to issue an official statement on RBI’s order.
Shares of Bajaj Finance ended 1.84 per cent lower at Rs 7223.95 at the end of Wednesday’s trading session.
-PTI
