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Thursday, November 16, 2023

RBI Clamps Down on Bajaj Finance: Halts 'eCOM' and 'Insta EMI Card' Loans Over Compliance Concerns - Punekar News

Sumit Singh

Pune, 16th November 2023: The Reserve Bank of India (RBI) has invoked its authority under Section 45L(1)(b) of the Reserve Bank of India Act, 1934, directing Bajaj Finance Ltd. to immediately halt the sanction and disbursal of loans under its ‘eCOM’ and ‘Insta EMI Card’ lending products.

The regulatory action comes in response to the company’s non-compliance with the Digital lending guidelines set forth by the RBI. Specifically, the central bank cites the company’s failure to issue Key Fact Statements to borrowers under the mentioned lending products, along with deficiencies identified in the Key Fact Statements related to other digital loans sanctioned by Bajaj Finance Ltd.

Yogesh Dayal, Chief General Manager at RBI, emphasized that these supervisory restrictions will only be lifted upon the successful rectification of the identified deficiencies to the satisfaction of the Reserve Bank of India.

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RBI Clamps Down on Bajaj Finance: Halts 'eCOM' and 'Insta EMI Card' Loans Over Compliance Concerns - Punekar News
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