If RBI restrictions to stop the sanction and disbursal of loans under its two lending products – eCOM and Insta EMI Card – are in place for a longer period of time, it may dampen investor sentiment.
RBI ban on Bajaj Finance: The RBI has asked Bajaj Finance to stop the sanction and disbursal of loans under two of its lending products with immediate effect, for not issuing Key Fact Statements to borrowers.
Last month, the RBI banned public sector Bank of Baroda (BoB) from onboarding any new customers onto its bob World mobile application three months after a news network said the bank linked bank accounts to unregistered mobile numbers and signed them up to the application. Earlier in December 2020, the RBI had banned HDFC Bank the largest issuer of credit cards in the country, from issuing new cards and introducing digital products after multiple systemic glitches were reported in the preceding two years. The ban was lifted in August 2021.
Analyst estimates are mixed. A Macquarie report citing the company s investor presentation said out of the 3,580,000 customers added in the second quarter about 670,000 or 19% were EMI card customers. Digitally-sourced EMI card franchise stood at 4,200,000 or 10% of the EMI card base.