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Well, it’s a known fact that if RBI removes ban from any restriction and lifts ban on any outlet or company then the companies shares increases, the same thing has happened with the Bajaj Finance Company.
After the Reserve Bank of India (RBI) removed its limits on loan approval and disbursement via eCOM and Insta EMI Card, Bajaj Finance shares increased by more than 7.50%. November of last year saw the imposition of the limitation.
What has this brought to the company Bajaj Finance?
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Bajaj Finance Group, a multinational conglomerate, has its stock emerged as the biggest gainer among the frontline indices. On the BSE, which is the Bombay stock exchange, the stock mobilized 7.54 per cent to Rs 7,400. It ascended 7.51 per cent to Rs 7,400 on the NSE, National Stock Exchange. And now, the company’s market valuation has succeeded Rs 23,008.1 crore to Rs 4,49,205.63 crore which is indeed a great achievement for the company.
The Bajaj Finance company said on Filing to the Stock Exchange, that they were now glad to inform us that the Reserve Bank of India, had decided to withdrawn the aforementioned restrictions on eCOM and online digital Insta EMI card with an immediate effect, as the letter dated May 2, 2024 had mentioned. And it was based on the corrective steps taken by the company. The business is still dedicated to meet regulatory criteria had been followed and fulfilled or not.
What is eCOM?
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The eCOM is an activity of buying and selling of goods and services, or the transmitting of funds or the data primarily over the internet or over an electronic network. The eCOM is full formed as E- Commerce. They basically fall within four main categories, and they are business to business which is B to B, business to consumer which is B to C, and lastly to consumer to consumer which is C to C or consumer to business which is C to B.
Insta EMI Card
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EMI, or the Equated monthly instalments card is a payment option which can help us in creating a big amount of purchases which is also cover table to monthly instalments, it is more similar to the credit card but specifically designed for the ticket purchases, like purchasing for the vehicles, real estate, appliances or the electronics, jewellery etc.
The Bajaj FinServ company through its Insta EMI card will allocate a customer identification number through which the person who is holding the card currently, can easily fulfil the need for the availment of various goods and services by taking the loan from the same company. The insta EMI card comes to the pr-approved loan of up to 3 lakhs. We can have a great amount of discount using the EMI card provided by the company and with this we can occur no additional monthly charges. Literally a smart and an easy option provided by the company!
What is the company’s role with the EMI card?
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The Bajaj FinServ company through its Insta EMI card will allocate a customer identification number through which the person who is holding the card currently, can easily fulfil the need for the availment of various goods and services by taking the loan from the same company. The insta EMI card comes to the pr-approved loan of up to 3 lakhs. We can have a great amount of discount using the EMI card provided by the company and with this we can occur no additional monthly charges. Literally a smart and an easy option provided by the company!
Why did RBI issue restrictions on the Bajaj Finance Group?
Image Source – Times Of India
Last year, the RBI, the Reserve Bank of India, had introduced us with its digital lending guidelines which requires the lenders to provide borrowers with the key fact statements which will have information on some parameters like, loan amount, the interest charges, the number of installments, the disbursed amount, annual percentage rate.
The RBI found the Bajaj Finance Company not adhering to its digital lending statements particularly in the Insta EMI card and the eCOM process. And this is the reason it undertook this action against the company.
It had really turned the customer cautious regarding the same as it took almost 6 months for the RBI to lift up its statements.
The Bajaj Finance Company
Image Source – Bajaj Finserv
Bajaj Finance or Finserv Company, is an Indian non – banking financial company. It’s headquartered in Pune; it is a leading non- banking financial company. The company had first concentrated on the automotive industry, but after a few years it started to officially issue equity shares and debuted on the Bombay Stock Exchange. Additionally, it has expanded into lending for businesses and real estate.
