RBI removes curbs on Bajaj Finance, allows resumption of lending through eCom and Insta EMI Card
Bajaj Finance to resume sanctioning and disbursal of new loans under its two lending products – eCOM and Insta EMI Card. The development came mere days after the company indicated its compliance and formally sought a review from the RBI. “We wish to inform that the RBI, vide its letter dated 2 May 2024, based on the remedial actions taken by the Company, has conveyed its decision of lifting the said restrictions on eCOM and online digital ‘Insta EMI Card’, with immediate effect," Bajaj Finance said in a regulatory filing on Thursday.
“The company would resume sanction and disbursal of loans in the above two business segments including issuance of EMI cards," it added. The NBFC had been asked to stop such transactions in mid-November last year for failing to abide by the central bank's digital lending guidelines — particularly non-issuance of key fact statements to the borrowers under the two lending products. Bajaj Finance, a subsidiary of Bajaj Finserv, is engaged in the lending and acceptance of deposits.
The non-banking financial company claims to have a diversified lending portfolio across retail, SMEs, and commercial customers. Last week, the company reported a 21 per cent increase in consolidated net profit at ₹3,825 crore for the final quarter of FY24. Total income during the January-March period of 2023-24 rose to ₹14,932 crore as against ₹11,368 crore in the year-ago period.
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