The Reserve Bank of India (RBI) has lifted the restrictions on Bajaj Finance's two products eCOM and online digital ‘Insta EMI Card’, with immediate effect, company said in an exchange filing on May 2.
The company further said that it would now resume sanction and disbursal of loans in the above two business segments including issuance of EMI cards.
On November 15, 2023, the Reserve Bank of India directed Bajaj Finance to stop sanction and disbursal of loans under its two lending products ‘eCOM’ and ‘Insta EMI Card’, with immediate effect.
The RBI said that this action is necessitated due to non-adherence of the company to the extant provisions of Digital lending guidelines of the central bank, particularly non-issuance of Key Fact Statements to the borrowers under these two lending products and deficiencies in the Key Fact Statements issued in respect of other digital loans sanctioned by the company.
On April 25, Bajaj Finance in a press release while announcing January-March results said it has made the required changes after the Reserve Bank of India (RBI) imposed business restrictions on two lending products last year. Following this, the company has requested the regulator to review the business restrictions.
“The Company has made required changes in response to the regulatory restriction imposed by RBI on the Company, on sanction and disbursal of loans under 'eCOM' and 'lnsta EMI Card'. The Company has formally requested RBI for a review and removal of these restrictions,” company said.
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