New Delhi. Bajaj Finance has temporarily suspended the issuance of EMI cards to new customers. The company has taken this decision after action from the Reserve Bank. Bajaj Finance told the stock market that the company has temporarily suspended the issuance of EMI cards for new customers. This moratorium will remain in place until the deficiencies observed by the RBI are rectified.
What the company said:
Bajaj Finance said the company is in the process of implementing necessary actions to close the deficiencies as soon as possible. The company will remain engaged with RBI to ensure compliance on all parameters. Let us tell you that the Reserve Bank of India (RBI) had directed Bajaj Finance to stop the approval and distribution of loans under its two loan products ‘Ecom’ and ‘Insta EMI Card’ with immediate effect.
Reserve Bank said-
Non-compliance by the Company with the extant provisions of the Digital Lending Guidelines of the Reserve Bank of India, particularly non-issue of key material statements to customers under these two loan products and lapses in the key material statements issued by the Company in respect of other digital loans sanctioned by the Company Due to this action has become necessary. RBI will review the ban again after satisfaction.