Bajaj Finance has announced the lifting of restrictions imposed by the Reserve Bank of India (RBI) on the issuance of existing Member Identification Cards (EMI cards) to new customers. Effective immediately, the RBI has allowed Bajaj Finance to resume the sanctioning and disbursing of loans in two business segments, including the issuance of EMI cards.
In a regulatory filing to the BSE, Bajaj Finance stated, “We wish to inform that the RBI, vide its letter dated May 2, 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.”
Backdrop of RBI’s Actions on Bajaj Finance Products
Previously, on November 15, 2023, the RBI had directed Bajaj Finance to cease sanctioning and disbursing loans under its two lending products, ‘eCOM’ and ‘Insta EMI Card,’ under Section 45L(1)(b) of the RBI Act, 1934. This directive was primarily due to issues related to the non-issuance of key fact statements to borrowers and deficiencies in key fact statements issued for other digital loans sanctioned by the company.
