The Reserve Bank of India recently reversed the restrictions imposed on Bajaj Finance, specifically related to its 'eCOM' and 'Insta EMI Card' businesses. Initially, the RBI ordered Bajaj Finance to halt the sanction and disbursal of loans under these two lending products in November 2023. However, following remedial actions taken by Bajaj Finance to rectify the concerns highlighted by the regulatory authority, the restrictions have been lifted, allowing the company to resume its loan operations and issuance of EMI cards in these segments.
In response to the RBI's communication, Bajaj Finance revealed that it would now restart the sanction and disbursal of loans in the eCOM and online digital Insta EMI Card business segments. The company emphasized its commitment to ensure compliance with regulatory guidelines while expressing its readiness to move forward with this decision. This development signifies a positive shift for Bajaj Finance, enabling it to resume its activities in these specific lending areas after the regulatory concerns have been appropriately addressed.
The decision by the RBI to lift the restrictions on Bajaj Finance comes after the company implemented remedial actions to handle the issues raised by the regulatory body in their November 2023 order. With the restrictions now lifted, Bajaj Finance can resume its loan operations in the identified business segments, thereby allowing the company to continue its financial services in compliance with regulatory guidelines. This development echoes a similar occurrence involving another financial institution, HDFC Bank, which faced sanctions from the RBI in the past but worked towards meeting the regulatory requirements for the restrictions to be lifted.