Financial services company Bajaj Finserv Ltd on Friday (November 17) announced the temporary suspension of issuing Existing Member Identification cards (EMI cards) to new customers until the deficiencies noted by the Reserve Bank of India (RBI) are rectified to the regulator's satisfaction.
The company assures that this suspension will not impede its regular operations of providing financing to both new and existing customers at dealer stores, according to a stock exchange filing.
This development follows previous communications on November 15, 2023, detailing actions taken in response to RBI observations. Bajaj Finserv emphasises that these measures, including the current suspension, will not have a material financial impact on the company.
To address the noted deficiencies swiftly, Bajaj Finserv is actively implementing necessary actions and remains committed to engaging with the RBI to ensure compliance with all regulatory parameters.
This comes after the central bank on Wednesday directed Bajaj Finance to stop sanction and disbursal of loans under its two lending products, eCOM and Insta EMI Card, with immediate effect due to the non-adherence of the company to the extant provisions of digital lending guidelines.
"This action is necessitated due to non-adherence of the company to the extant provisions of digital lending guidelines of the Reserve Bank of India, particularly non-issuance of Key Fact Statements to the borrowers under these two lending products and the deficiencies in the Key Fact Statements issued in respect of other digital loans sanctioned by the company," the RBI said in a statement.
Shares of Bajaj Finserv Ltd ended at ₹1,615.25, down by ₹4.90, or 0.30 percent on the BSE.
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