RBI Lifts Immediate Ban on Bajaj Finance's eCOM, Insta EMI Card
The Reserve Bank of India (RBI) has lifted its restrictions on Bajaj Finance's eCOM and online digital ‘Insta EMI Card’ products, effective immediately. This decision was conveyed in a letter dated May 2, 2024, after Bajaj Finance took remedial measures to address the central bank's concerns.
With the lifting of the ban, Bajaj Finance will resume the sanctioning and disbursal of loans in these two business segments, as well as the issuance of EMI cards.
The restrictions were initially imposed in November 2023, when RBI cited non-compliance with its digital lending guidelines as the reason. Bajaj Finance was found to be in violation of existing regulations, particularly regarding the provision of key fact statements to borrowers in the eCOM and ‘Insta EMI Card’ programs. In addition, there were deficiencies in the key fact statements provided for other digital loans sanctioned by the company.
Bajaj Finance's remedial actions have now satisfied the RBI's concerns, leading to the lifting of the restrictions. This development allows the company to resume its normal operations in these lending products. The move is expected to have a positive impact on Bajaj Finance’s business and customers seeking digital loan options.
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