Shares of Bajaj Finance Rise 7% as the RBI Lifts the November Ban

 

The Reserve Bank of India (RBI) lifted the prohibition that had prevented the non-banking financial company (NBFC) from authorizing and disbursing loans for its eCOM and Insta EMI Card products, which caused Benzinga - Bajaj Finance (NS:BJFN) shares to soar on Friday morning.

What transpired: In November, the RBI enforced this limitation as a result of non-adherence to digital lending regulations.

Bajaj Finance declared that it may now start approving and paying out loans under these two categories after the restriction was lifted.

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This update was released by the business on Thursday in a regulatory statement. The statement said, "...we wish to inform that the RBI, vide its letter dated 2 May 2024, has conveyed its decision of lifting the said restrictions on eCOM and online digital "Insta EMI Card," with immediate effect, based on the remedial actions taken by the company."

In addition, Bajaj Finance announced that it would resume issuing Existing Member Identification (EMI) cards to prospective clients in order to broaden its offerings across these industry sectors. This action clears the way for the company and its prospective clients to resume the growth trajectory of its digital lending operations, which is greatly relieving.

Price Action: Shortly after the bourses started for trade on Friday, Bajaj Finance shares were up 6.57% at ₹7,335 on the day.