The Reserve Bank of India (RBI) on Wednesday directed Bajaj Finance to stop the approval and disbursement of loans under its two loan products ‘Ecom’ and ‘Insta EMI Card’ with immediate effect. The Central Bank has issued a statement in this regard.
According to the statement issued by the RBI, “The Company is not complying with the extant provisions of the Digital Loan Guidelines of the Reserve Bank of India, particularly the non-disclosure of key facts to the customers under these two loan products and other digital loans approved by the Company.” This action has been made necessary due to flaws in the key details issued regarding the loan. ,
Action against Bajaj Finance Ltd. under Section 45L(1)(b) of the Reserve Bank of India Act, 1934https://t.co/o5qMfckCZi
— ReserveBankOfIndia (@RBI) November 15, 2023
Decision will be taken after review.
RBI said that this action had to be taken due to non-issuance of important fact statements to the borrowers under these two loan products and deficiencies in the key fact statements while approving other digital loans. The Central Reserve Bank said that these restrictions will be reviewed after removing the above deficiencies and to the satisfaction of the RBI.
The effect of this action of RBI was also seen on the shares of Bajaj Finance. After this order of the Reserve Bank, there has been a decline in the stock of Bajaj Finance and it fell by about 2 percent and closed at Rs 7,224.30 with a fall of Rs 136.55.