RBI asks Bajaj Finance to stop lending under eCOM, Insta EMI Card products
The Reserve Bank on Wednesday directed Bajaj Finance to stop sanction and disbursal of loans under its two lending products — eCOM and Insta EMI Card with quick impact due to the non-adherence of the corporate to the extant provisions of digital lending tips.
“This action is necessitated due to non-adherence of the company to the extant provisions of Digital lending guidelines of the Reserve Bank of India, particularly 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,” the RBI stated in an announcement.
These supervisory restrictions shall be reviewed after the rectification of stated deficiencies to the satisfaction of the RBI, the central financial institution added. In August final yr, the Reserve Bank issued tips on digital lending with an intention to defend the curiosity of debtors. The regulatory framework is targeted on the digital lending ecosystem of RBI Regulated Entities (REs) and lending service suppliers (LSPs) engaged by them to prolong numerous permissible credit score facilitation providers.
Earlier in January 2021, the central financial institution constituted a working group on ‘digital lending, together with lending via on-line platforms and cell apps (WGDL). Pune-headquartered Bajaj Finance has reported a 28 per cent rise in its consolidated internet revenue to Rs 3,551 crore for the second quarter ended September 30.
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