Bajaj Finance has now asked to halt the lending via 2 products. RBI is now going to review the supervisory restrictions after the Bajaj rectified deficiencies. Recently, the shares of Bajaj Finance fell by 1.8% to Rs. 7,223 per share at the time of the trade on 15th November 2023, Wednesday when the Sensex and Nifty jumped over 1%. RBI has now barred Bajaj Finance Limited from lending under the eCOM and Insta EMI Card products. RBI has made a big statement on this topic. To know about it, read this article till the end, and do not miss anything if you want to learn everything.
On 15th November 2023, Wednesday, the Reserve Bank of India (RBI) said that there is an action necessitated because of the non-adherence of Bajaj Finance to the extant provision of the digital lending guidelines of the Reserve Bank of India (RBI) mainly the non-issuance of the main fact statements to the borrowers who are under these two lending products. It has been claimed that the deficiencies are the main fact statements that are issued in the terms of some other digital loans sanctioned by Bajaj. It has been claimed by the regulators that it is going to be revied the supervisory restrictions after the company officially rectifies the deficiencies to the satisfaction of RBI.
As per the RBI digital lending guidelines which were released in 2022, the lenders might have an issue a key fact statement to the borrower at the time of providing the loan. This might have some details of the annualized rate that is charged to the borrower of the digital loan, the recovery mechanism, and some other details to the grievance redressal officer. The Bajaj Finance Insta EMI card is officially allowing customers to do shipping with zero-cost EMIs. It has been claimed that with this EMI card, the customers are going to receive the pre-approved loan limit which is more than Rs. 2 lakh which might be used at 150,000 online and offline partner stores in approximately 4,000 cities.
According to the source, there are a total of 42 million EMI cards in the force at this time as per its investor presentation for the quarter which ended on 30th September 2023, it was higher by 22% YoY, In Q2, it acquired more than 4.2 million EMI cards vira digital channel. The company added a total of 3.58 million new customers at the time of Q2 with around 8% of the fresh customers in addition to the EMI Card.