Bajaj Finance: The central bank has directed Bajaj Finance Ltd to stop providing loans under its two product categories due to purported violations of digital lending regulations.
Bajaj Finance, a division of Bajaj Finserv Ltd., was told in a statement today by the Reserve Bank of India (RBI) to cease providing loans under its “two lending products, eCOM and Insta EMI Card” right away.
Violation of central bank’s existing criteria:
The company was allegedly found to be in violation of the central bank’s existing criteria for digital lending, according to the RBI, which is why it took this step.
“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,” in a statement, the RBI’s Chief General Manager Yogesh Dayal remarked.
Bajaj Finance claims to have 63 million customers on its website:
The RBI stated that after Bajaj Finance fixes the errors it identified, it will revisit the ruling.
Bajaj Finance claims to have 63 million customers on its website. It is a non-banking financial company (NBFC) that accepts deposits and is registered with the RBI. It is categorised as a “NBFC-Investment and Credit Company” and is able to lend money to retail, medium-sized business, and commercial clients.
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