The Reserve Bank of India has told Bajaj Finance to stop giving out loans on eCOM and Insta EMI Card right away.
They were told to do this immediately, and now it has to be followed.
Case of violation of digital lending guidelines
The Reserve Bank of India told the company to do this because they didn’t follow the rules for giving out digital loans.
In their statement, RBI said they had to do this because the company didn’t follow the rules for digital loans from the Reserve Bank of India.
This had to happen because the company didn’t give important information to people taking loans in these two cases and
made mistakes when approving other digital loans.
Action against Bajaj Finance Ltd. under Section 45L(1)(b) of the Reserve Bank of India Act, 1934https://t.co/o5qMfckCZi
— ReserveBankOfIndia (@RBI) November 15, 2023
Action under RBI Act
The RBI gave Bajaj Finance some rules using the power it has from the Reserve Bank of India Act 1934.
The RBI mentioned that once Bajaj Finance fixes the mistakes, they will check the rules again, and the RBI will decide if everything is okay, making sure it’s satisfied.
Bajaj Finance stock decline
The RBI gave this direction after the stock market closed. Today, during trading, the value of Bajaj Finance’s stock dropped significantly.
It ended at Rs 7,224.30, falling by 1.86 percent or Rs 136.55.