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 an easy to read concise format..
However, Jefferies expects a limited financial impact on the company as it estimates the insta EMI Card base at 40 lakhs 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..
It is reviewing the KFS for the loans booked under the two lending products, based on the concerns raised by the RBI and implementing requisite corrective actions...
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