2024-05-04 09:15:27
New Delhi: The Reserve Bank of India (RBI) has lifted the ban on approval and distribution of loans through eCom and Insta EMI cards on Bajaj Finance, the country’s largest NBFC. The central bank had in November last year directed Bajaj Finance to stop sanctioning and disbursing loans under two of its loan products – Ecom and Insta EMI cards. This ban was imposed due to non-compliance with the existing provisions of digital lending guidelines. Due to this, the company’s profit fell by four percent in the fourth quarter. Also, after this ban, the company’s shares have also fallen by five percent. Bajaj Finance said it will now resume loan approval and distribution in both business segments, including EMI card issuance. The company said in a filing to the stock exchange, ‘RBI, through its letter dated May 2, 2024, has Informed about its decision to lift the ban on eCom and online digital ‘Insta EMI Cards’ with immediate effect based on the corrective steps taken. The company said, ‘Bajaj Finance is committed to ensuring compliance with regulatory guidelines.’ The company said it has made necessary changes in response to the regulatory restrictions imposed by the RBI.
sanctions review
Bajaj Finance had formally requested RBI to review and remove these restrictions. RBI said this was due to the company’s non-compliance with the extant provisions of the central bank’s digital loan guidelines, particularly non-issue of key fact statements to borrowers under these two products and deficiencies in the key fact statements. Action was taken. After the relief from RBI, now the shares of the company are expected to rise. The company’s shares closed at Rs 6881.00 with a decline of 0.72 per cent on Thursday. The company’s 52-week high is Rs 8,190.00. It had reached this level on October 6 last year. It is the country’s largest NBFC in terms of market cap. Its market cap is Rs 4,25,931.37 crore.
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