RBI finds serious deficiencies in Bajaj Fin-RBL credit card deal; Exclusive details on extension

In response to CNBC-TV18's query, RBL Bank mentioned that both RBL and Bajaj Finance have a long-standing co-brand partnership agreement which was renewed in 2021 for a period of five years. "We continue to issue the co-branded cards in-line with the RBI guidelines," the response stated.

CNBC-TV18 has also reached out to Bajaj Finance and the Reserve Bank of India, and is awaiting comments.

Sources said that the RBI letter pointed to serious deficiencies in the company's adherence to RBI's guidelines. It further said that further extension from the current one-year period is subject to review.

On November 15, the RBI had asked Bajaj Finance to immediately cease the sanction and disbursal of loans under its 'eCOM' and 'Insta EMI Card' lending products.

Brokerage firm Motilal Oswal wrote in a note that co-branded cards with Bajaj Finance accounted for 60% to 65% of RBL Bank's total credit card issuances.

Shares of Bajaj Finance are currently at the day's low, down 1.34% at ₹7,197.7, while shares of RBL Bank are also at the day's low, down 2.1% at ₹266.85.