The RBI has ordered Bajaj Finance to stop lending under its two products
New Delhi:
Bajaj Finance Ltd has been instructed by the central bank to halt loans under two of its products over alleged breach of digital lending rules.
The Reserve Bank of India (RBI) stated today that Bajaj Finance, a subsidiary of Bajaj Finserv Ltd, must cease providing loans under its “two lending products eCOM and Insta EMI Card” immediately.
The RBI took this action after finding the company in violation of existing provisions of the central bank’s digital lending guidelines.
“This action is necessary due to the company’s non-compliance with the existing provisions of digital lending guidelines of Reserve Bank of India, particularly the 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 in a statement issued by its Chief General Manager Yogesh Dayal.
The RBI mentioned that it will reconsider the decision once Bajaj Finance rectifies the identified shortcomings.
Bajaj Finance states on its website that it serves around 63 million customers. It is an RBI-registered deposit-taking non-banking financial company (NBFC) and is classified as an ‘NBFC-Investment and Credit Company’, which can lend money and take deposits across a diversified lending portfolio in retail, small and medium enterprises and commercial customers.
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