MUMBAI - The Reserve Bank of India (RBI) has imposed supervisory actions on Bajaj Finance Ltd, directing the non-banking financial company to cease issuing new loans under its 'eCOM' and 'Insta EMI Card' products. The central bank's decision, announced today, cites non-compliance with its digital lending guidelines, specifically pointing out the absence of Key Fact Statements for these loan offerings and deficiencies in those provided for other digital loans.
The regulatory body has made it clear that these restrictions will remain in place until Bajaj Finance addresses the identified issues. The RBI will reassess the situation following the company's successful rectification of the problems related to the digital lending norms.
This action comes as part of a broader crackdown by the RBI on regulatory non-compliance within the financial sector. Recently, penalties were levied on several other financial institutions, including Punjab National Bank, which was fined ₹72 lakh; Federal Bank, fined ₹30 lakh; Kosamattam Finance Ltd, fined ₹13.38 lakh; and Mercedes-Benz (OTC:MBGAF) Financial Services India Private Ltd, which incurred a penalty of ₹10 lakh. These fines were imposed for various violations, encompassing aspects such as non-adherence to the Know Your Customer (KYC) Direction of 2016.
Bajaj Finance's suspension marks a significant move by the RBI to enforce its digital lending guidelines and ensure transparency and fairness in the rapidly growing digital credit market. The company is expected to undertake corrective measures promptly to resume its digital loan services for the affected products.
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