Recently, the Reserve Bank of India barred renowned finance company Bajaj Finance’s two digital lending products, Insta EMI Card and eCOM. Yes, you heard it right, RBI has banned Bajaj Finance’s two aforementioned lending services. Not to mention, this development would definitely affect retailers as Bajaj Finance largely used to sanction loans on the purchases of appliances through now-barred products eCOM and Insta EMI Card. Do you know why Bajaj Finance banned Bajaj Finance from lending under its two aforementioned products? If not, the following sections will let you know everything about it. Stick with this page and go through it till the end. Drag down the page.
As a result of RBI’s ban on Bajaj Finance’s two digital lending products, Insta EMI Card and eCOM, the largest consumer goods financier Bajaj Finance is not able to disburse loans under the fore aforementioned products. On Wednesday, November 15, 2023, RBI gave a shocking update on Bajaj Finance’s two digital lending products. The apex body cited that non-compliance with digital lending guidelines led RBI to ban Bajaj Finance from disbursing loans from those two products or services. As a result of a ban on Insta EMI and eCOM, the retailers are saying that this decision of RBI will majorly impact retailers both offline and online. Swipe down the page and read more details.
As a result of RBI’s ban, Amazon and MakeMyTrip have removed the payment options through Bajaj Finance’s EMI. The e-commerce website, Amazon noted, “Following instructions from Bajaj Finance Limited, Bajaj Finserv EMI card (BFL) will not be available on Amazon from 16th November 2023. BFL should be back soon, please keep checking Amazon for the latest status,” Bajaj Finance accounts for a significant share of sales for large retailers such as smartphones, electronics, and furniture.
The head of omnichannel business at mobile phone seller Sangeetha Mobiles, Anirban Chakraborti said “In times when high inflation is eating into household budgets, more consumers have come to use and avail of the benefits of this lending product,” As far as we know, financing products account for nearly 50 percent of sales for smartphone retailers. Likewise, Bajaj Finance is the largest non-banking finance company. Typically, retailers use financing products to attract new customers. Anirban Chakraborti added this ban will have a significant impact on us. The ban will take away a large chunk of our online customers.