RBI has directed Bajaj Finance to cease sanction, disbursal of loans underneath its two lending merchandise, ‘eCOM’ and ‘Insta EMI Card’, with speedy impact.
RBI says these supervisory restrictions on Bajaj Finance shall be reviewed upon the rectification of the mentioned deficiencies to the satisfaction of the central financial institution
The Reserve Bank of India (RBI) on Wednesday, November 15, directed Bajaj Finance Ltd to cease sanction and disbursal of loans underneath its two lending merchandise, ‘eCOM’ and ‘Insta EMI Card’, with speedy impact, as a result of non-adherence to the extant provisions of digital lending pointers.
“The Reserve Bank of India has today, in exercise of its powers under section 45L(1)(b) of the Reserve Bank of India Act, 1934, has directed Bajaj Finance Ltd to stop sanction and disbursal of loans under its two lending products ‘eCOM’ and ‘Insta EMI Card’, with immediate effect,” the RBI mentioned in an announcement.
It additionally mentioned this motion is necessitated as a result of non-adherence of the corporate to the extant provisions of digital lending pointers of the RBI, significantly non-issuance of key truth statements to the debtors underneath these two lending merchandise and the deficiencies in the important thing truth statements issued in respect of different digital loans sanctioned by the corporate.
“These supervisory restrictions will be reviewed upon the rectification of the said deficiencies to the satisfaction of RBI,” it mentioned.
Recently, the banking regulator RBI additionally imposed a Rs 72 lakh penalty on state-owned Punjab National Bank and a Rs 30 lakh fantastic on non-public sector lender Federal Bank for non-compliance with sure regulatory norms. The RBI additionally imposed a Rs 13.38 lakh penalty on Kosamattam Finance Ltd for a similar cause.
Apart from this, the RBI on November 3 additionally imposed a penalty of Rs 10 lakh on Mercedes-Benz Financial Services India Private Ltd (previously often known as Daimler Financial Services India Private Ltd) for non-compliance with sure provisions of the Know Your Customer (KYC) Direction, 2016.
