RBI directs Bajaj to stop loan disbursal under EMI card

Mumbai: The Reserve Bank on Wednesday directed Bajaj Finance to stop sanction and disbursal of loans under its two lending products eCOM and Insta EMI Card, with immediate effect. “This action is necessitated due to non-adherence of the company to the extant provisions of Digital lending guidelines of the Reserve Bank of India, particularly non-issuance of Key Fact Statements to the borrowers under these two lending products and the deficiencies in the Key Fact Statements issued in respect of other digital loans sanctioned by the company,” the central bank said in a statement. These supervisory restrictions will be reviewed after the rectification of the said deficiencies to the satisfaction of the RBI, it added.