Active Stocks
Mon Mar 04 2024 11:00:49
  1. Tata Steel share price
  2. 153.10 -1.32%
  1. Bharti Airtel share price
  2. 1,138.85 0.73%
  1. Larsen & Toubro share price
  2. 3,632.00 -0.61%
  1. NTPC share price
  2. 355.60 4.02%
  1. Power Grid Corporation Of India share price
  2. 293.60 2.34%
Business News/ Companies / News/  RBI orders Bajaj Finance to stop lending via ‘eCOM’ and ‘Insta EMI Card’ with immediate effect
BackBack

RBI orders Bajaj Finance to stop lending via ‘eCOM’ and ‘Insta EMI Card’ with immediate effect

The restriction has been imposed due to ‘non-adherence’ to the RBI's digital lending guidelines, a statement noted.

RBI said the supervisory restrictions on Bajaj Finance's two lending products will be reviewed 'upon the rectification of the said deficiencies'. Photo: Aniruddha Chowdhury/MintPremium
RBI said the supervisory restrictions on Bajaj Finance's two lending products will be reviewed 'upon the rectification of the said deficiencies'. Photo: Aniruddha Chowdhury/Mint

The Reserve Bank of India (RBI) has directed Bajaj Finance to stop disbursing loans through two of its lending products – “eCOM" and “Insta EMI Card" – with immediate effect, as per an official statement issued on November 15.

The action has been taken under section 45L(1)(b) of the Reserve Bank of India Act, 1934, the banking sector regulator noted, adding that Bajaj Finance would be required to comply with its directive with “immediate effect".

The order has been issued due to “non-adherence" to the extant provisions of RBI's digital lending guidelines, the statement noted.

The NBFC's non-adherence to the norms particularly includes the “non-issuance of Key Fact Statements to the borrowers under these two lending products and the deficiencies in the Key Fact Statements issued in respect of other digital loans sanctioned by the company", RBI added.

Also Read: Bajaj Finance trims exposure to ‘imprudent borrowers’ in rural, urban areas

The restriction imposed on the two lending products will be “reviewed upon the rectification of the said deficiencies to the satisfaction of RBI", the central bank further stated.

RBI had, in August last year, released the digital lending guidelines in a bid to crack down on fraud and unlawful activities in the digital loans segment. The guidelines comprise norms to to protect borrowers, and digital lending platforms, including banks and NBFCs, are required to comply with them.

Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!

The Pune-headquartered Bajaj Finance has emerged as one the leading NBFCs, with the company reporting a net profit of 3,550.8 crore in the quarter ending September 2023, higher by 28 percent as compared to 2,781 crore in the year-ago period. The net interest income during the period increased by 26.3 percent on-year to 8,845 crore.

In the trading session on November 15, Bajaj Finance's scrip settled at 7,223.95 apiece on the BSE, down 1.84 percent as against the previous day's close.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 15 Nov 2023, 05:11 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie