RBI directs Bajaj Finance to stop giving loans under eCOM, Insta EMI Card

• RBI has directed Bajaj Finance to stop sanctioning and disbursing loans under ‘eCOM’ and ‘Insta EMI Card’, with immediate effect.
• The action is necessitated due to non-adherence to digital lending guidelines of Reserve Bank of India, the banking regulator said.
  

Indian banking regulator on Wednesday directed Bajaj Finance to stop sanction and disbursal of loans under its two lending products ‘eCOM’ and ‘Insta EMI Card’, with immediate effect.

“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 Reserve Bank of India said in a press release.

These supervisory restrictions will be reviewed upon the rectification of the said deficiencies to the satisfaction of RBI, it added.

Bajaj Finance is a non-banking financial company, with a customer base of 76.5 million. It has ₹2.9 lakh crore in assets under management (AUM) as of September 30, 2023. Its deposit book stood at ₹54,821 crore in the same period.

It has also raised ₹8,800 crore via qualified institutional placement (QIP) earlier this month.

(This is a developing story, and will be updated)