In a regulatory move, the Reserve Bank of India (RBI) has directed non-banking financial company (NBFC) Bajaj Finance to immediately halt the sanctioning and disbursal of loans under its ‘eCOM’ and ‘Insta EMI Card’ products. The action is taken due to the company’s non-compliance with RBI’s digital lending guidelines, specifically the failure to issue Key Fact Statements to borrowers for these products and deficiencies in the statements issued for other digital loans.
The RBI, in a press release, stated, “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 central bank has made it clear that it will conduct a review of these supervisory restrictions once the identified deficiencies are rectified to the satisfaction of the RBI. This move underscores the importance of adherence to regulatory guidelines in the digital lending space, with a focus on transparency and consumer protection.
