On the morning of Thursday, November 16th, Bajaj Finance experienced a setback as its shares dropped nearly 3% in the opening session.
The decline was attributed to a regulatory move by the Reserve Bank of India (RBI), which directed the non-bank lender to cease the sanction and disbursal of loans under its ‘eCOM’ and ‘Insta EMI Card’ lending products.
The RBI’s intervention came in response to Bajaj Finance’s non-adherence to the existing provisions outlined in the RBI’s digital lending guidelines. The central bank, acting as a watchdog for the financial sector, took swift action to address the non-compliance issues, emphasizing the importance of adherence to regulatory frameworks in the rapidly evolving landscape of digital lending.
As of 9:15 am, Bajaj Finance shares were down by 2.62%, trading at ₹7035.10.
Bajaj Finance, a prominent player in the non-banking financial sector, has been a key contributor to India’s consumer finance landscape. The company’s foray into digital lending products such as ‘eCOM’ and ‘Insta EMI Card’ has played a significant role in expanding its reach and catering to the evolving needs of consumers in the digital era.
However, the recent regulatory directive indicates that even established financial entities must remain vigilant in adhering to guidelines, ensuring fair practices, and protecting the interests of consumers.
