The Reserve Bank of India (RBI) has barred Bajaj Finance, a leading consumer lender, from disbursing loans for its 'eCOM' and 'Insta EMI Card' products due to non-compliance with digital lending rules.
Effective immediately, the ban is a result of the company's failure to issue key fact statements to borrowers and deficiencies in statements for other digital loans.
RBI's supervisory restrictions will be lifted upon rectification. Bajaj Finance, with ₹2.14 trillion in assets as of September 30, faces this regulatory action amid rising concerns about unfair digital lending practices and insufficient borrower information.