Section 45L (1) (b) of RBI Act, 1934

On 15th November, 2023, the Reserve Bank of India (RBI) directed a non-bank financial company (NBFC) to immediately stop loan disbursements under its 'eCOM' and 'Insta EMI Card' products.

  • RBI took the action by exercising its powers under section 45L (1) (b) of the Reserve Bank of India Act (RBI), 1934.

Rationale

  • The decision results from the company's non-compliance with the Digital Lending Guidelines, specifically the omission of Key Fact Statements (KFS) for borrowers and deficiencies in those issued for other digital loans.
  • Further, RBI's digital lending guidelines (2022) require that a lender disclose all fees and charges to borrowers upfront and ....
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