The Reserve Bank of India (RBI) has put the brakes on Bajaj Finance’s two digital lending products, “eCOM” and “Insta EMI Card.” Effective immediately, this directive comes as a response to Bajaj Finance’s failure to align with RBI’s digital lending guidelines.
What Happened? The RBI’s decision, rooted in section 45L(1)(b) of the Reserve Bank of India Act, 1934, highlights a key issue: Bajaj Finance didn’t provide borrowers with essential information through Key Fact Statements for these products. Moreover, there were notable gaps in the statements for other digital loans offered by the company.
This isn’t just a slap on the wrist. The RBI has made it clear that until Bajaj Finance fixes these issues to their satisfaction, the restriction on “eCOM” and “Insta EMI Card” stays. It’s a clear message from the central bank: adherence to digital lending norms isn’t optional. For Bajaj Finance, it’s back to the drawing board to align with these regulations and get back in the RBI’s good books.
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