Reserve Bank banned Bajaj Finance..!? Do you know the reason?

Sowmiya Sriram
Reserve bank banned Bajaj Finance..!? Do you know the reason?
The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india (RBI) has ordered Bajaj Finance to stop sanctioning and disbursing loans under two of its loan products. The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india (RBI) on november 15 asked Bajaj Finance to start sanctioning and disbursing loans under its two loan products with immediate effect. The move has been taken due to non-compliance with existing norms of the Reserve bank of India's wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital lending guidelines.
Especially not providing key factual statements to borrowers under these two loan products. Deficiencies in key factual statements issued in relation to other wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital loans sanctioned by the Company.
What transpired after RBI forbade Bajaj Finance from providing loans through two products? The central bank further informed that these supervisory controls will be reviewed after the above deficiencies are rectified to the satisfaction of the RBI. On august 10, 2022, RBI released a list of regulations to regulate wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital lending to protect borrowers.
In january 2021 RBI set up a task force to study issues related to wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital credit and recommend regulations. In november 2021, the group proposed tougher regulations for wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital lenders, some of which have reportedly been accepted.

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