• Home
  • Business
  • RBI banned 2 Bajaj Finance e-lending products eCom and Insta EMI Card

RBI banned 2 Bajaj Finance e-lending products eCom and Insta EMI Card

RBI banned 2 Bajaj Finance e-lending products eCom and Insta EMI Card

The RBI stopped Bajaj Finance from lending under its two products—eCom and Insta EMI Card—on November 15, 2023, alleging noncompliance with digital lending criteria. According to several businesses Mint talked with, this change will have a big impact on retailers both online and offline.

 

This is the central bank's first substantial action under its digital lending standards, which were introduced a year ago.  Following the spread of unlicensed loan applications and defaults on low-value digital loans, digital loans have come under attention.
Retailers across the board may suffer as a result of the Reserve Bank of India's prohibition on Bajaj Finance, India's largest consumer goods financier, from disbursing loans under two programmes.

 

Insta EMI cards are generated immediately and do not require prior application or sanction.

 

According to merchants, the popularity of the Bajaj Finserv Insta EMI Card has increased in the previous six to eight months since it offers clients a flexible repayment duration and no-cost EMI choices. "In times when high inflation is eating into household budgets, more consumers have come to use and avail of the benefits of this lending product," said Anirban Chakraborti, omni-channel business head at mobile phone seller Sangeetha Mobiles.

 

Financing goods make for over half of mobile phone shop sales. Bajaj Finance is the largest non-banking finance company in India.

 

Last year, the RBI issued digital lending guidelines that required lenders to provide borrowers with key fact statements (KFS) that included information on 15 parameters such as loan amount, interest charges, fees, insurance charges, disbursed amount, amount to be paid by the borrower, annual percentage rate, and number of instalments.
 


Ananya Birla Bids Farewell to Music, Focuses on Business Pursuits

Ananya Birla Bids Farewell to Music, Focuses on Business Pursuits

Indian singer-songwriter Ananya Birla announces her departure from the music industry to dedicate he...
Zomato Serves Up Free Weather Data with Launch of WeatherUnion.com

Zomato Serves Up Free Weather Data with Launch of WeatherUnion.com

Food delivery giant Zomato has launched a free, crowd-sourced weather monitoring service called Weat...
India's Central Bank Cracks the Whip: Infrastructure Projects on Fast Track?

India's Central Bank Cracks the Whip: Infrastructure Projects on Fast Track?

India's notorious infrastructure project delays might finally see an end. The Reserve Bank of In...
Kotak Mahindra Bank CEO Clarifies KVS Manian's Exit, Focuses on Rebuilding Reputation After RBI Action

Kotak Mahindra Bank CEO Clarifies KVS Manian's Exit, Focuses on Rebuilding Reputation After RBI Action

Kotak Mahindra Bank CEO clarifies KVS Manian's departure and outlines plans to address IT issues...
KKR Acquires Healthium MedTech in $839 Million Deal, Expanding Healthcare Portfolio

KKR Acquires Healthium MedTech in $839 Million Deal, Expanding Healthcare Portfolio

Global investment firm KKR is acquiring Bengaluru-based medical device maker Healthium MedTech from ...
New CCI Settlement Rules Yet to See Action, But Expected to Be Popular

New CCI Settlement Rules Yet to See Action, But Expected to Be Popular

Businesses are yet to utilize the newly introduced settlement and commitment regulations by CCI, but...
Marico's Profit Up Despite Flat Revenue in Q4

Marico's Profit Up Despite Flat Revenue in Q4

FMCG major Marico witnessed a 4.9% increase in profit for Q4FY24 but flat revenue. Profit growth for...
Paramount Weighs New Options After Skydance Talks Stall: Sony-Apollo Bid Looms Large

Paramount Weighs New Options After Skydance Talks Stall: Sony-Apollo Bid Looms Large

Paramount ends exclusive talks with Skydance, opening the door for a potential $26 billion bid from ...
Happiest Minds Makes Strategic Acquisition of PureSoftware Technologies for Rs 779 Crore

Happiest Minds Makes Strategic Acquisition of PureSoftware Technologies for Rs 779 Crore

Happiest Minds Technologies acquires PureSoftware Technologies for Rs 779 crore, expanding its digit...
Bajaj Auto MD Rajiv Bajaj Demands Lower GST Rates to Revamp Commuter Motorcycle Market

Bajaj Auto MD Rajiv Bajaj Demands Lower GST Rates to Revamp Commuter Motorcycle Market

Rajiv Bajaj, MD of Bajaj Auto, calls for a substantial reduction in GST rates on commuter motorcycle...