The Reserve Bank of India (RBI) has barred Bajaj Finance from giving loans under two products Insta EMI and Ecom.
Banking & Finance
The Reserve Bank of India (RBI) has barred Bajaj Finance from offering loans under two products - Insta EMI and eCom, citing violation of certain provisions of digital lending guidelines. This includes non-issuance of Key Fact Statements (KFS) to borrowers for these two loan products and deficiencies in the KFS issued for other digital loans approved by the Company. Insta EMI Card, a virtual card, offers customers 'No-Cost EMI' that enables you to shop across 1 million products offered on EMI. A pre-approved loan of Rs 2 lakh is also available on this card, whose repayment period is up to 60 months. Bajaj Finance's total assets under management (AUM) stood at Rs 2.9 trillion, which included Rs 81,215 crore of Bajaj Housing Finance. RBI specified that the KFS should contain the annual percentage rate (APR), recovery mechanism, details, among other essential information.
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