RBI lifts curbs imposed on Bajaj Finance for sanction of new loans under eCOM, Insta EMI cards

The Reserve Bank of India on May 2 lifted the curbs imposed on Bajaj Finance for sanction and disbursal of new loans under two products–’eCOM’ and ‘Insta EMI Card’, the company informed the exchanges.

“RBI, vide its letter dated 2 May 2024, based on the remedial actions taken by the company, has conveyed its decision of lifting the said restrictions on eCOM and online digital ‘Insta EMI Card’, with immediate effect,” the notification said.

Bajaj Finance will now resume sanction and disbursal of loans in the above two business segments including the issuance of EMI cards, the company said, adding that it remains committed to ensuring adherence and compliance of regulatory guidelines.

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The central bank had in November 2023 restricted the NBFC from giving new loans under the ‘eCOM’ and ‘Insta EMI Card’ products, following which the NBFC temporarily suspended the issue of Existing Member Identification cards (EMI cards) to new customers.

As part of the Q4 FY24 earnings, Bajaj Finance had said that new loans booked during the quarter were lower by about 8 lakh due to the RBI restrictions. Total number of new loans booked in Q4 grew 4 per cent on year to 78.7 lakh.

The NBFC had then said that it has made required changes in response to the regulatory restrictions and has formally requested RBI for a review and removal of these restrictions.