Bajaj Finance received a significant reprieve on Thursday as the Reserve Bank of India (RBI) lifted the restrictions imposed on its two loan products, 'eCOM' and 'Insta EMI Card'. With immediate effect, the company can now resume the sanction and disbursal of loans under these offerings, marking the end of a six-month period of constraint.
The 'eCOM' product, designed as a consumer financing solution for online shopping, and the 'Insta EMI Card', facilitating flexible payment options for a wide range of products, had faced regulatory scrutiny due to Bajaj Finance's alleged non-compliance with digital lending guidelines. Specifically, the central bank cited issues related to the non-issuance of Key Fact Statements to borrowers as the reason for imposing restrictions on these loan products.
In response to the RBI's directives, Bajaj Finance temporarily suspended the issuance of EMI cards to new customers. However, the company has since taken remedial actions to address the concerns raised by the regulatory authorities.
On May 2, the RBI announced the lifting of restrictions on the two loan products, acknowledging the remedial measures implemented by Bajaj Finance. Consequently, the company is now authorized to resume the sanction and disbursal of loans under the 'eCOM' and 'Insta EMI Card' segments, including the issuance of EMI cards to customers.
This development marks a significant milestone for Bajaj Finance, allowing it to regain momentum in its lending activities and restore confidence among its customer base.
