RBI orders Bajaj Finance to stop disbursing loans via 'eCOM' and 'Insta EMI Card' products
Nov 15, 2023
New Delhi [India], November 15 : The Reserve Bank of India on Wednesday barred Bajaj Finance Limited from sanctioning and disbursing loans under its two lending products -- eCOM and Insta EMI Card with immediate effect.
In a statement, the RBI said the company did not adhere to the digital lending guidelines under these two lending products.
RBI further said the company didn't issue key fact statements to the borrowers under these two lending products.
"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 said.
These supervisory restrictions will be reviewed upon the rectification of the deficiencies to the satisfaction of the RBI.
"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. to stop sanction and disbursal of loans under its two lending products 'eCOM' and 'Insta EMI Card', with immediate effect," the central bank said.
