MUMBAI: The Reserve Financial institution on Wednesday directed Bajaj Finance to cease sanction and disbursal of loans below its two lending merchandise — eCOM and Insta EMI Card with quick impact because of the non-adherence of the corporate to the extant provisions of digital lending pointers.
“This motion is necessitated because of non-adherence of the corporate to the extant provisions of Digital lending pointers of the Reserve Financial institution of India, significantly non-issuance of Key Reality Statements to the debtors below these two lending merchandise and the deficiencies within the Key Reality Statements issued in respect of different digital loans sanctioned by the corporate,” the RBI mentioned in an announcement.
These supervisory restrictions will probably be reviewed after the rectification of mentioned deficiencies to the satisfaction of the RBI, the central financial institution added.
In August final yr, the Reserve Financial institution issued pointers on digital lending with an purpose to guard the curiosity of debtors. The regulatory framework is concentrated on the digital lending ecosystem of RBI Regulated Entities (REs) and lending service suppliers (LSPs) engaged by them to increase numerous permissible credit score facilitation providers.
Earlier in January 2021, the central financial institution constituted a working group on ‘digital lending, together with lending by on-line platforms and cellular apps (WGDL).
Pune-headquartered Bajaj Finance has reported a 28 per cent rise in its consolidated web revenue to Rs 3,551 crore for the second quarter ended September 30.
“This motion is necessitated because of non-adherence of the corporate to the extant provisions of Digital lending pointers of the Reserve Financial institution of India, significantly non-issuance of Key Reality Statements to the debtors below these two lending merchandise and the deficiencies within the Key Reality Statements issued in respect of different digital loans sanctioned by the corporate,” the RBI mentioned in an announcement.
These supervisory restrictions will probably be reviewed after the rectification of mentioned deficiencies to the satisfaction of the RBI, the central financial institution added.
In August final yr, the Reserve Financial institution issued pointers on digital lending with an purpose to guard the curiosity of debtors. The regulatory framework is concentrated on the digital lending ecosystem of RBI Regulated Entities (REs) and lending service suppliers (LSPs) engaged by them to increase numerous permissible credit score facilitation providers.
Earlier in January 2021, the central financial institution constituted a working group on ‘digital lending, together with lending by on-line platforms and cellular apps (WGDL).
Pune-headquartered Bajaj Finance has reported a 28 per cent rise in its consolidated web revenue to Rs 3,551 crore for the second quarter ended September 30.
