RBI lifts restrictions on Bajaj Finance’s eCOM, Insta EMI card

Relaxation for Bajaj Finance: Bajaj Finance announced on Thursday that Reserve Bank of India (RBI) has lifted restrictions on its lending products, enabling it to resume sanctioning and disbursing loans in previously banned business segments.

Following ban imposed in November, shares of non-banking lender h declined by nearly 5 per cent, contrasting with nearly 11 per cent surge in Nifty Financial Services index during same period.

central bank h prohibited Bajaj Finance from issuing loans under its eCOM and Insta EMI Card lending products, citing deficiencies in hering to digital lending guidelines. Specifically, Bajaj Finance h failed to provide essential information to borrowers under se two products, as per RBI's assessment.

Last week, Bajaj Finance confirmed that it h implemented necessary regulatory changes and requested RBI to lift restrictions.

Vinit Bolinjkar, he of research at Ventura Securities, remarked, " development is quite positive for Bajaj Finance's business, especially considering temporary absence of a competitive player like Kotak Mahindra Bank from market." 

Kotak Mahindra Bank h recently been barred by RBI from acquiring new customers via its online and mobile banking channels and issuing new credit cards due to deficiencies related to information technology.

Bolinjkar ded, "It is likely that Bajaj Finance will heavily reinvest in se products and aggressively strive to regain market share."

(With Reuters inputs)