In a shocking turn of events for Bajaj Finance, the company lost more than 3 percent on the BSE on Thursday, November 16, 2023, i.e. today, following the Reserve Bank of India’s ban on the company’s two digital lending services or schemes. Yes, you heard it right, Bajaj Finance’s digital lending schemes, eCOM and Insta EMI, have been barred by RBI. Notably, the apex body announced this decision to be followed with immediate effect. Since this news broke out, it has been continuously making headlines and trending everywhere. People have stumbled upon the loans booked under the aforementioned barred digital schemes of Bajaj Finance. A number of questions are swirling among the customers of Bajaj Finance after RBI banned its two schemes. You should stick with this page and go through it till the end for more details.
As a result of this development, Bajaj Finance lost 4 percent on the BSE taking its value to Rs 6,937.15 in intraday trade. On Wednesday, the Reserve Bank of India directed NBFC (non-banking finance company) not to lend under its two products eCOM and Insta EMI with immediate effect. Speaking of the reason for the ban on Bajaj Finance’s lending services, RBI found a violation of certain provisions of the digital lending guidelines for these two lending services, including the non-issuance of KFS (Key Fact Statements) to borrowers. In addition, RBI also detected a deficiency in issued KFS for other digital loans. Swipe down the page.
For the third straight day in a row, the shares of Bajaj Finance were trading lower up to 7 percent during the period. The shares of Bajaj Finance were trading at the lowest level since August 21, 2023. On Thursday, the shares of Bajaj Finance were down 1.5 percent at Rs 6937.15 against the 0.14 percent drop in the S&P BSE Sensex.
Bajaj Finance clarified that it is already issuing KFS for the loans booked under the two lending products. “However, based on the concerns raised by the RBI, the company will undertake a detailed review of the KFS and implement requisite corrective actions to the satisfaction of the RBI at the soonest,” Bajaj Finance informed in an exchange filing that the supervisory restrictions will remain in place till the deficiencies observed are corrected by the company to the satisfaction of the RBI, in terms of issuance of KFS (Key Fact Statements) to the borrowers. Stay tuned.