CURATED BY – ABHISHEK KUMAR TIWARI | CITYCHIEFNEWS

The country's largest NBFC Bajaj Finance has suffered a major setback. Banking sector regulator Reserve Bank of India has ordered Bajaj Finance Limited to immediately approve loans under two lending products eCOM and Insta EMI cards and stop the dispersion. This order of RBI has come into effect immediately.

Issuing this order, the Reserve Bank of India said that this order has been issued due to the company not following the digital lending guidelines of RBI. RBI said in its statement, this action became necessary because the company was not complying with the extant provisions of the Digital Loan Guidelines of the Reserve Bank of India, especially the failure to issue important fact statements to the borrowers under these two loan products. And this action was necessitated by deficiencies in key fact statements in approving other digital loans.