Bajaj Finance Stops Onboarding Of EMI Cards To New Customers

Bajaj Finance has temporarily suspended the issuance of Existing Member Identification cards (‘EMI cards’) to new customers. The company has further said that it is not going to issue EMI cards until the company rectifies the deficiencies observed by the Reserve Bank of India (RBI).

The company continues to offer financing options to new and existing customers at dealer stores as part of the normal course of business.

The decision has come as an aftermath of RBI's decision to bar Bajaj Finance from lending under two products — Insta EMI and eCOM. RBI stated that these two products accounted for violations of certain provisions of the digital lending guidelines. According to the central bank, it has observed some deficiencies in the issuance of key fact statements (KFS) for other digital loans sanctioned by the bank. Also, there has been non-issuance of KFS to borrowers for these two lending products.

The company further added that the decision taken by the company to not issue EMI cards for quite some time, will not have any material financial impact.