Bajaj Finance Ltd has been ordered by the central bank to stop providing loans in its two product categories for alleged violation of digital lending rules.
The Reserve Bank of India (RBI) today said in a statement that Bajaj Finance, an arm of Bajaj Finserv Ltd, should immediately stop providing loans under its “two loan products eCOM and Insta EMI Card “.
The RBI said it took the action after the company was allegedly accused of violating existing provisions of the central bank’s digital lending guidelines.
“This action is necessary due to the Company’s non-compliance with the existing provisions of the Reserve Bank of India’s digital lending guidelines, particularly non-issuance of key fact statements to borrowers under these two products loan and gaps in key facts. statements issued regarding other digital loans sanctioned by the company,” the RBI said in the statement issued by its chief general director Yogesh Dayal.
The RBI said it would review the decision once Bajaj Finance corrects the reported defects.
Bajaj Finance says on its website that it has some 63 million customers. It is a deposit-taking non-banking financial company (NBFC) registered with the RBI and classified as “NBFC-Investment and Credit Company”, which can lend money and accept deposits into a wallet of diversified loans to individuals, small and medium-sized businesses. and commercial customers.