RBI takes action against Bajaj Finance due to non-adherence of Digital lending guidelines

The Reserve Bank of India (RBI) has taken action against Bajaj Finance Ltd. under Section 45L(1)(b) of the Reserve Bank of India Act, 1934 due to non-adherence of Digital lending guidelines, on November 15, 2023.

The RBI has directed Bajaj Finance Ltd. (“the company”) to stop sanction and disbursal of loans under its two lending products ‘eCOM’ and ‘Insta EMI Card’, with immediate effect.

This action is required due to the company’s failure to adhere to the existing provisions of the Reserve Bank of India’s Digital lending guidelines, specifically its inability to issue Key Fact Statements to borrowers under these two lending products and deficiencies in the Key Fact Statements issued in respect of other digital loans sanctioned by the company. These supervisory restrictions will be revisited once the shortcomings have been rectified to the satisfaction of the RBI.