Bajaj Finance shares climbed on Friday morning as the Reserve Bank of India (RBI) removed the ban that had previously halted the non-banking financial company (NBFC) from approving and disbursing loans for its eCOM and Insta EMI Card products.
What Happened: The RBI imposed this restriction in November due to non-compliance with digital lending guidelines.
With the ban lifted, Bajaj Finance announced that it can now resume sanctioning and disbursing loans under these two segments.
The company shared this update in a regulatory statement on Thursday. “…we wish to inform that the RBI, vide its letter dated 2 May 2024, based on the remedial actions taken by the company, has conveyed its decision of lifting the said restrictions on eCOM and online digital ‘Insta EMI Card', with immediate effect,” the statement outlined.
Bajaj Finance also noted that it would restart the issuance of Existing Member Identification (EMI) cards to new customers, expanding its services within these business segments. This move comes as a significant relief to the company and its potential customers, setting the stage for a resumed growth trajectory in its digital lending operations.
Price Action: Bajaj Finance shares were up 6.57% at ₹7,335 on Friday shortly after the bourses opened for trading on the day.
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