According to the non-banking finance company Bajaj Finance, loan approval and disbursement in these two business segments, including the issuance of EMI cards, will now be resumed.
With immediate effect, the RBI has lifted the restrictions on eCOM and online digital “Insta EMI Card” in a letter dated May 2, 2024, which was based on corrective actions taken by the company, Bajaj Finance said in a stock exchange filing on Thursday.
On November 15, 2023, the banking regulator RBI issued an order to Bajaj Finance, directing it to cease the approval and disbursement of loans under its two lending products, the “Insta EMI Card” and “eCOM,” effective immediately.
The RBI took action against Bajaj Finance because the NBFC disregarded the central bank’s guidelines for digital lending, specifically by failing to provide important fact sheets to the borrowers under the two lending products.
Although the RBI’s removal of these restrictions is expected, analysts say that the relief in less than six months is a positive surprise that also supports the company’s management’s ability to quickly correct course when necessary.
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