Indian banking regulator, the Reserve Bank of India (RBI), has issued a directive to Bajaj Finance to cease sanctioning and disbursing loans under its ‘eCOM’ and ‘Insta EMI Card’ products with immediate effect. The RBI stated that this action is necessary due to the company’s non-compliance with digital lending guidelines.
The RBI press release mentioned that Bajaj Finance failed to issue Key Fact Statements to borrowers under these loan products, as well as deficiencies in the Key Fact Statements issued for other digital loans. The regulator emphasized that these supervisory restrictions will be lifted only upon the satisfactory rectification of these deficiencies.
Bajaj Finance, a non-banking financial company with 76.5 million customers, holds ₹2.9 lakh crore in assets under management (AUM) as of September 30, 2023, and a deposit book of ₹54,821 crore in the same period. Additionally, the company recently raised ₹8,800 crore through a qualified institutional placement (QIP) earlier this month.
This story is a developing one, and further updates will be provided.
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