Key Points
Reserve Bank of India (RBI) has barred Bajaj Finance, India's largest consumer financier, from sanctioning and disbursing loans under two of its lending products - 'eCOM' and 'Insta EMI Card' citing non-issuance of key fact statements (KFS) to the borrowers under these two lending products, and deficiencies in the KFS for other digital loans of the company...
RBI rules mandate that digital loan customers are given these details in a easy-to-read concise format..
A Macquarie report citing the company's investor presentation said out of the 3,580,000 customers added in the second quarter about 670,000 or 19% were EMI card customers..
However, Jefferies expects a limited financial impact on the company as it estimates the insta EMI Card base at 4,000,000 or 5% of total clients, that is 0.2% of disbursals, which is less than 1% of fees and less than 0.5% of profit.. What has the company said?..
Bajaj Finance said it does not expect the RBI action to have a material financial impact on the company...
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