RBI Update: RBI said that after Bajaj Finance corrects these shortcomings, the supervisory restrictions will be reviewed and RBI will review the decision after its satisfaction.
RBI On Bajaj Finance: The country’s largest NBFC Bajaj Finance has suffered a major setback. Banking sector regulator Reserve Bank of India has asked Bajaj Finance Ltd to immediately stop approving and disbursing loans under two lending products eCOM and Insta EMI Card. Ordered to be installed. This order of RBI has come into effect immediately.
Case of violation of digital lending guidelines
Issuing this order, the Reserve Bank of India said that this order has been issued due to the company not following the digital lending guidelines of RBI. RBI said in its statement, this action became necessary because the company was not following the existing provisions of the digital loan guidelines of the Reserve Bank of India.
This action was necessitated especially due to non-issuance of key fact statements to borrowers under these two loan products and deficiencies in key fact statements while approving other digital loans.
Action against Bajaj Finance Ltd. under Section 45L(1)(b) of the Reserve Bank of India Act, 1934https://t.co/o5qMfckCZi
— ReserveBankOfIndia (@RBI) November 15, 2023
Action under RBI Act
RBI has issued these guidelines to Bajaj Finance under the powers given under the Reserve Bank of India Act 1934. RBI said that after these shortcomings are corrected, the supervisory restrictions will be reviewed and RBI will review the decision after its satisfaction.
Bajaj Finance stock decline
This order from RBI has come after the closure of the stock market, but in today’s trading session, a big fall has been seen in the stock of Bajaj Finance. The stock closed at Rs 7,224.30 with a fall of 1.86 percent or Rs 136.55.