Now, Bajaj Finance is able to continue authorizing and disbursing loans under the "Insta EMI Card" and "eCOM" lending products. After almost six months, the Reserve Bank of India (RBI) removed the limitations on the two lending products.
The 'Insta EMI Card' is a financing option that allows clients to shop for a variety of items and get EMI payments on them, while the 'eCOM' product is essentially a consumer financing facility provided by Bajaj Finance to borrowers for online shopping.
Due to Bajaj Finance's "non-adherence" to its current digital lending criteria, namely with regard to the non-issuance of Key Fact Statements to the borrowers under these two loan products, the central bank had imposed the limitations in November of last year.
The business then said that it would be temporarily suspending the issuing of EMI cards to new clients.
"Based on the remedial actions" implemented by Bajaj Finance, the RBI removed the limitations on the two lending products on May 2.
In a statement, Bajaj Finance stated, "The Company would now resume sanctions and disbursal of loans in the above two business segments, including issuance of EMI cards."
