Indian banking regulator Reserve Bank of India (RBI) has taken action against Bajaj Finance, directing the company to immediately halt the sanctioning and disbursing of loans under its ‘eCOM’ and ‘Insta EMI Card’ products. This move comes as a result of Bajaj Finance’s failure to adhere to the digital lending guidelines set by the RBI.
In a press release, the RBI stated, “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 further added that these supervisory restrictions will be lifted once the deficiencies are rectified to the satisfaction of the RBI.
Bajaj Finance, a non-banking financial company with a customer base of 76.5 million, has assets under management (AUM) totaling ₹2.9 lakh crore as of September 30, 2023. In the same period, its deposit book stood at ₹54,821 crore. Earlier this month, the company raised ₹8,800 crore via qualified institutional placement (QIP).
As this is a developing story, further updates will follow.
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