Bajaj Finance Ltd has been directed by the central bank to refrain from offering loans under two of its product categories due to alleged violation of digital lending rules.
The Reserve Bank of India (RBI) stated today that Bajaj Finance, a subsidiary of Bajaj Finserv Ltd, must immediately cease lending under its “two lending products eCOM and Insta EMI Card”.
The RBI took this action after the company was reportedly found to be violating current provisions of the central bank’s digital lending guidelines.
“This action is necessary because of the company’s failure to adhere to the existing provisions of the Reserve Bank of India’s digital lending guidelines, particularly the non-issuance of key fact statements to borrowers under these two lending products and deficiencies in the key fact statements issued for 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 issues.
On its website, Bajaj Finance states that it serves around 63 million customers. It is an RBI-registered deposit-taking non-banking financial company (NBFC) classified as an ‘NBFC-Investment and Credit Company’, with the ability to lend money and accept deposits across a diverse lending portfolio, including retail, small and medium enterprises, and commercial customers.
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