RBI lifts restrictions on Bajaj Finance's eCOM, 'Insta EMI Card'

The Reserve Bank of India (RBI) has lifted the restrictions imposed on Bajaj Finance's two products, eCOM and the online digital 'Insta EMI Card', with immediate effect. Bajaj Finance announced this development in an exchange filing on May 2.

The company stated that it would resume the sanction and disbursal of loans in these two business segments, including the issuance of EMI cards.

Earlier, on November 15, 2023, the RBI directed Bajaj Finance to halt the sanction and disbursal of loans under these two lending products due to non-compliance with the Digital Lending Guidelines. The central bank particularly cited the non-issuance of Key Fact Statements to borrowers and deficiencies in the statements issued for other digital loans.

In response, Bajaj Finance made the necessary adjustments, as mentioned in their press release during the announcement of January-March results on April 25. They also formally requested the RBI to review and remove the imposed restrictions.

This decision marks a significant development for Bajaj Finance, allowing them to resume operations in these key business segments following compliance measures undertaken after regulatory intervention.