Mumbai: The Reserve Bank of India (RBI) on Wednesday directed Bajaj Finance to stop sanction and disbursal of loans under its two lending products ‘eCOM’ and ‘Insta EMI Card’, with immediate effect.
The RBI in a media release said that it took action against the non-banking finance company for its non-compliance with digital lending guidelines.
“This action is necessitated due to non-adherence of the company to the extant provisions of Digital lending guidelines of 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 said.
It further said, “These supervisory restrictions will be reviewed upon the rectification of the said deficiencies to the satisfaction of RBI.”
The central bank has taken action against Bajaj Finance exercising its powers under section 45L(1)(b) of the Reserve Bank of India Act, 1934.