The Reserve Bank of India (RBI) has taken action against Bajaj Finance, directing the company to immediately cease the sanctioning and disbursal of loans under its ‘eCOM’ and ‘Insta EMI Card’ products. This move comes as a result of the company’s failure to adhere to the digital lending guidelines set forth the RBI.
In a press release, the RBI stated that Bajaj Finance was not issuing Key Fact Statements to borrowers under these two lending products, as well as issuing deficient Key Fact Statements for other digital loans. As a result, the banking regulator has implemented supervisory restrictions on the company. However, the RBI has indicated that these restrictions will be lifted once the identified deficiencies have been rectified to its satisfaction.
Bajaj Finance is a non-banking financial company with a customer base of 76.5 million and assets under management totaling ₹2.9 lakh crore as of September 30, 2023. Additionally, the company’s deposit book stood at ₹54,821 crore during the same period. Earlier this month, Bajaj Finance raised ₹8,800 crore through a qualified institutional placement (QIP).
This is an ongoing story, and updates will be provided as new information becomes available.