The Reserve Bank of India (RBI) has asked Bajaj Finance to immediately stop sanctioning and distribution of loans under its two loan products - 'eCOM' and 'Insta EMI'.
According to RBI, Bajaj Finance is not following the existing provisions of Digital Loan Guidelines, due to which this action has been taken. The central bank has asked Bajaj Finance to rectify the shortcomings, after which the restrictions imposed will be reviewed.
Issuing a statement, RBI said, 'Using its powers under Section 45L (1) (B) of the Reserve Bank of India Act 1934, Bajaj Finance Limited has been directed to stop the approval and distribution of loans. This order will be applicable to two loan products of Bajaj Finance 'eCOM' and 'Insta EMI'.
This action was necessitated due to non-adherence to the extant provisions of the Digital Loan Guidelines of the Reserve Bank, particularly non-issuance of Key Fact Statement to the borrowers of these two loan products and deficiencies in the Key Fact Statement of Digital Loans. Is.'
RBI has imposed a ban on approval and distribution of loans through 'eCOM' and 'Insta EMI' after the stock market is closed. Therefore, the impact of this decision has not been seen in its shares today. Tomorrow i.e. on 16th November, due to this ban, we may see a sharp fall in the shares of Bajaj Finance. However, even today Bajaj Finance stock remained the top loser of Nifty 50 with a fall of 1.95%.