RBI acts against Bajaj Finance, asks it to stop giving loans via 2 products

The Reserve Bank of India (RBI) on Wednesday directed Bajaj Finance to immediately stop loan disbursements under its 'eCOM' and 'Insta EMI Card' products.

"The Reserve Bank of India has today, in exercise of its powers under section 45L(1)(b) of the Reserve Bank of India Act, 1934, has directed Bajaj Finance Ltd. (“the company”) to stop sanction and disbursal of loans under its two lending products ‘eCOM’ and ‘Insta EMI Card’, with immediate effect," the central bank said.

The decision results from the company's non-compliance with the Digital Lending Guidelines, specifically the omission of Key Fact Statements for borrowers and deficiencies in those issued for other digital loans.