RBI Directs Bajaj Fin To Stop Loans Under 'eCOM', 'Insta EMI' Products

The Reserve Bank of India(RBI) has directed Bajaj Finance to stop the sanction of loans under two of its lending products namely ‘eCOM’ and ‘Insta EMI Card’ with immediate effect. The decision came since the non-banking financial company(NBFC) did not comply with certain norms set by the RBI.

“This action is required due to non-compliance of the NBFC to the extant provisions of Digital lending guidelines of RBI, particularly the non-issuance of Key Fact Statements to the borrowers under the mentioned lending products and the deficiencies in the Key Fact Statements issued with respect to other digital loans sanctioned by the company,” the RBI said on Wednesday.

The action taken will be reviewed and taken into consideration once Bajaj Finance has rectified the inadequacies to the satisfaction of the RBI, the central bank said.

Over the past few years, the RBI has pulled up players in the banking and financial services industry for their non-compliance with the set of guidelines, particularly at the digital front.

In December 2020, the RBI had directed HDFC Bank to cease new activities aimed at building digital businesses and directed it to stop taking on new credit card customers after the lender faced multiple data center breaches.

The central bank had lifted all the sanctions placed on HDFC Bank in March 2022.

The RBI had also in March 2022 restricted Paytm Payments Bank from adding new customers to its facility due to likely gaps in its technology systems.