The central bank has ordered Bajaj Finance Ltd to stop disbursing loans under two categories of its products for alleged violation of digital loan norms.
The Reserve Bank of India (RBI) said in a statement today that Bajaj Finance, a subsidiary of Bajaj Finserv Ltd, should immediately stop disbursing loans under its “two lending products Ecom and Insta EMI Cards”.
The RBI said it took the action because the company allegedly violated the existing provisions of the central bank’s digital lending guidelines.
A statement issued by RBI Chief General Manager Yogesh Dayal said, “The key facts are non-compliance by the company with the existing provisions of Reserve Bank of India’s digital lending guidelines, particularly to borrowers under these two loan products.” The action is warranted due to non-disclosure of details and deficiencies in key factual statements regarding other digital loans approved by the company.”
The RBI has said it will review its decision after Bajaj Finance rectifies the deficiencies mentioned.
Bajaj Finance has stated on its website that it has around 6.3 million customers. It is an RBI-registered deposit taking Non-Banking Financial Company (NBFC) and is classified as an ‘NBFC-Investment and Credit Company’, offering a diversified loan portfolio to retail, small and medium enterprises and commercial customers. Can lend and borrow money. deposits