Bajaj Finance temporarily suspends issuance of EMI cards to new customers

livemint.com:

Bajaj Finance on Friday in an exchange filing said that it is temporarily suspending issuance of EMI cards to new customers after the order issued by the Reserve Bank of India. In a regulatory filing, Bajaj Finance said," We would like to further inform that the Company has temporarily suspended the issuance of Existing Member Identification cards (‘EMI cards’) to new customers till such time that the deficiencies observed by RBI are rectified to their satisfaction.

The Company continues to offer financing to new and existing customers at dealer stores in the normal course of business." The company further added," We further wish to inform that the above action, together with the actions communicated in this regard on 15 November 2023, will not have a material financial impact on the Company." “The Company is in the process of implementing requisite actions to make good the deficiencies at the earliest, and will continue to engage with RBI to ensure compliance on all parameters." Earlier, the Reserve Bank directed Bajaj Finance to stop sanction and disbursal of loans under its two lending products -- eCOM and Insta EMI Card with immediate effect due to the non-adherence of the company to the extant provisions of digital lending guidelines. "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 RBI said in a statement.