The Reserve Bank of India (RBI) on Wednesday, November 15, directed Bajaj Finance Ltd to stop sanction and disbursal of loans under its two lending products, ‘eCOM’ and ‘Insta EMI Card’, with immediate effect, due to non-adherence to the extant provisions of digital lending guidelines.
“The Reserve Bank of India has today, in exercise of its powers under section 45L(1)(b) of the Reserve Bank of India Act, 1934, has directed Bajaj Finance Ltd to stop sanction and disbursal of loans under its two lending products ‘eCOM’ and ‘Insta EMI Card’, with immediate effect,” the RBI said in a statement.
It also said this action is necessitated due to non-adherence of the company to the extant provisions of digital lending guidelines of the RBI, particularly non-issuance of key fact statements to the borrowers under these two lending products and the deficiencies in the key fact statements issued in respect of other digital loans sanctioned by the company.
“These supervisory restrictions will be reviewed upon the rectification of the said deficiencies to the satisfaction of RBI,” it said.
Recently, the banking regulator RBI also imposed a Rs 72 lakh penalty on state-owned Punjab National Bank and a Rs 30 lakh fine on private sector lender Federal Bank for non-compliance with certain regulatory norms. The RBI also imposed a Rs 13.38 lakh penalty on Kosamattam Finance Ltd for the same reason.
Apart from this, the RBI on November 3 also imposed a penalty of Rs 10 lakh on Mercedes-Benz Financial Services India Private Ltd (formerly known as Daimler Financial Services India Private Ltd) for non-compliance with certain provisions of the Know Your Customer (KYC) Direction, 2016.