The Reserve Bank of India (RBI) has lifted the restrictions on two digital lending products of Bajaj Finance.

Nearly six months after the curbs, the RBI has allowed Bajaj Finance to sanction and disburse loans through eCOM and Insta EMI Card.

In November last year, the banking regulator had directed Bajaj Finance to stop offering the two products as the NBFC was not meeting its digital lending guidelines.

“This action is necessitated due to non-adherence of the company to the extant provisions of digital lending guidelines of the RBI, particularly non-issuance of Key Fact Statements (KFS) to the borrowers under these two lending products and the deficiencies in the KFS issued in respect of other digital loans sanctioned by the company,” the central bank had said.

In a regulatory filing on Thursday, Bajaj Finance said the apex bank has done away with the restrictions.

“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,” it said.

Bajaj Finance added that it would now resume the sanction and disbursal of loans in the two business segments including the issuance of EMI cards.

“The company remains committed to ensure adherence and compliance of regulatory guidelines,” it said.

The RBI’s decision initially led to a sharp rally in the Bajaj Finance stock as it shot up nearly 7.54 per cent on the BSE.

However, it surrendered most of these gains amid pressure on the markets, but still ended in the green.

The stock rallied 7.54 per cent to ₹7,400 during the morning trade on the BSE. It subsequently ended at ₹6,932.80, up 0.75 per cent.

On the NSE, it settled at ₹6,927, up 0.64 per cent after climbing 7.51 per cent to ₹7,400.

Shares of Bajaj Finserv were also active as it rose 0.69 per cent to settle at ₹1627.10 on the BSE.

The lifting of restrictions comes just days after the apex bank barred Kotak Mahindra Bank from onboarding any new customers through its online and mobile banking channels and also prohibited it from issuing fresh credit cards.