The Reserve Bank of India (RBI) has lifted restrictions on Bajaj Finance on sanctioning and disbursal of loans under its two lending products - eCOM and Insta EMI Card.

In mid-November last year, the RBI had directed Bajaj Finance to stop sanction and disbursal of loans through eCOM and Insta EMI Card for failing to abide by the central bank's digital lending guidelines — particularly non-issuance of key fact statements to the borrowers under the two lending products.

"Now, we wish to inform that the RBI, vide its letter dated 2 May 2024, based on the remedial actions taken by the company, has conveyed its decision of lifting the said restrictions on eCOM and online digital 'Insta EMI Card', with immediate effect," Bajaj Finance said in a regulatory filing.

The company further said it would now resume sanction and disbursal of loans in the two business segments including issuance of EMI cards.

Bajaj Finance, a subsidiary of Bajaj Finserv, is engaged in the lending and acceptance of deposits. The non-banking financial company (NBFC) has a diversified lending portfolio across retail, SMEs and commercial customers. 

Last week, the company posted a 21% increase in consolidated net profit at Rs 3,825 crore for the exit quarter of FY24.