Bajaj Finance temporarily halts issuance of EMI Cards to new customers

Bajaj Finance on Friday informed the exchanges that it has temporarily suspended the issuance of Existing Member Identification cards (‘EMI cards’) to new customers until the company rectifies the deficiencies observed by the Reserve Bank of India (RBI).

The company continues to offer financing to new and existing customers at dealer stores in the normal course of business.

The decision comes in the backdrop of RBI’s decision to bar Bajaj Finance from lending under two products — Insta EMI and eCOM — on account of violations of certain provisions of the digital lending guidelines. As per the central bank, it observed certain deficiencies in the issuance of key fact statements (KFS) for other digital loans sanctioned by the company, as well as non-issuance of KFS to borrowers for these two lending products.

The company added that the decision will not have any material financial impact.