Bajaj Finance Temporarily Suspends Issuing EMI Cards To New Customers
It has suspended issuing new EMI cards till such time that the deficiencies observed by RBI are rectified to their satisfaction.
Bajaj Finance Ltd. has temporarily suspended the issuance of 'Existing Member Identification' cards to new customers following the order from the Reserve Bank of India.
It has suspended the issuance to new customers till such time that the deficiencies observed by RBI are rectified to their satisfaction, it said in its exchange filing on Friday.
The NBFC is in the process of implementing the requisite actions to make good on the deficiencies at the earliest, it said.
Bajaj Finance does not have a material financial impact and will continue to offer financing to new and existing customers at dealer stores in the normal course of business, the statement said.
The Reserve Bank on Nov. 15 barred Bajaj Finance from lending under its “eCOM” and “Insta EMI Card” products due to the non-adherence of the company to the extant provisions of digital lending guidelines.
According to the RBI's digital lending guidelines, a lender must issue a standard key fact statement to borrowers for all digital lending products. It must contain details regarding the annual percentage rate, recovery mechanism, details of the grievance redressal officer, etc., among other things.
Bajaj Finance has over 4 crore EMI cards in force, according to its investor presentation for the quarter ended September, higher by 22% year-on-year. In the second quarter, it acquired over 40 lakh EMI cards through the digital channel.
These cards allow customers to purchase goods and services on no-cost monthly installments. With the card, customers can get up to Rs 2 lakh worth of pre-approved limit, which can be used at offline and online stores.