In a move to uphold consumer protection and regulatory compliance, the Reserve Bank of India (RBI) has directed Bajaj Finance to halt the sanction and disbursement of loans under its ‘eCOM’ and ‘Insta EMI’ products with immediate effect. The decision stems from the company’s non-adherence to the established digital lending guidelines, particularly in the areas of Key Fact Statement (KFS) issuance and content.
According to the RBI’s statement, Bajaj Finance has failed to provide borrowers with KFSs for these two lending products, a crucial document that outlines the loan terms and conditions. Additionally, deficiencies have been identified in the KFSs issued for other digital loans offered by the company.
The central bank has emphasized that these supervisory restrictions will be reviewed once Bajaj Finance rectifies the identified deficiencies to the RBI’s satisfaction. This move serves as a reminder of the importance of adhering to regulatory guidelines and ensuring consumer transparency in the digital lending landscape.
* RBI restricts Bajaj Finance’s ‘eCOM’ and ‘Insta EMI’ loans due to compliance issues.
* Company failed to provide borrowers with KFSs for these products.
* Deficiencies found in KFSs issued for other digital loans.
* Supervisory restrictions will be reviewed upon rectification of deficiencies.
* RBI emphasizes importance of compliance and consumer transparency in digital lending.