RBI lifts curb on Bajaj Finance's lending products 'eCOM', 'Insta EMI Card'

The Reserve Bank of India (RBI) has removed the restrictions imposed on Bajaj Finance’s lending products 'eCOM' and 'Insta EMI Card' with immediate effect, the company informed the exchanges on Thursday.

According to the exchange filing, "Now, 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."

The Non-Banking Financial Company (NBFC) will resume sanction and disbursal of loans through both these business segments, including issuance of EMI cards.

The RBI had imposed a ban on sanction and disbursals of new loans under 'eCOM' and digitally through 'Insta EMI Card' on account of digital lending guidelines violation. It included the non-issuance of key fact statements (KFS) to borrowers for these two lending products as well as deficiencies in KFS issued for other digital loans sanctioned by the company.

Further, in its letter dated 17 November 2023, the NBFC had informed the exchanges about the temporary suspension of issuance of Existing Member Identification cards ('EMI cards') to new customers.