RBI lifts restrictions on two Bajaj Finance products
RBI had directed Bajaj Finance to stop sanction and disbursal of loans under eCOM and Insta EMI Card for non-adherence to provisions of digital lending guidelines
In a relief to Bajaj Finance, the Reserve Bank of India (RBI) has lifted restrictions on the NBFC on sanctioning and disbursal of loans through eCOM and Insta EMI Card.
In November last year, the central bank had directed Bajaj Finance to stop sanction and disbursal of loans under its two lending products — eCOM and Insta EMI Card — due to non-adherence by the company to provisions of digital lending guidelines.
“Now, we wish to inform that the RBI, vide its letter dated 2 May 2024, based on the remedial actions taken by the company, has conveyed its decision of lifting the said restrictions on eCOM and online digital ‘Insta EMI Card’, with immediate effect,” the company said in a filing to the stock exchanges.
It said it would now resume sanction and disbursal of loans in the two business segments including issuance of EMI cards.
“The company remains committed to ensure adherence and compliance of regulatory guidelines,” ithe company added.
The RBI had said on November 25, 2023, the action was necessitated due to non-adherence of the company to the extant provisions of digital lending guidelines of the RBI, particularly non-issuance of key fact statements to the borrowers under the two lending products.