New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    The Reserve Bank of India (RBI) has prohibited

    _________  from lending under two products — Insta EMI and eCOM  due to violations of certain provisions of the digital lending guidelines.  The Insta EMI card, a virtual card, enables customers to shop for 1 million products offered by the company at ‘no-cost EMI’. A pre-approved loan of ____ is also available with this card, featuring a repayment tenure of up to 60 months. Fill in the correct options for the information provided above- 
    A Bajaj Finance ; Rs. 2 lakh Correct Answer Incorrect Answer
    B Aditya Birla Capital; Rs.4 lakh Correct Answer Incorrect Answer
    C Muthoot Fincorp; Rs.7 lakh Correct Answer Incorrect Answer
    D Shriram Finance Ltd.; Rs.10 lakh Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    The Reserve Bank of India (RBI) has barred Bajaj Finance from lending under two products — Insta EMI and eCOM  citing violations of certain provisions of the digital lending guidelines.  This includes the non-issuance of key fact statements (KFS) to borrowers for these two lending products and deficiencies in KFS issued for other digital loans sanctioned by the company.  The Insta EMI card, a virtual card, enables customers to shop for 1 million products offered by the company at ‘no-cost EMI’. A pre-approved loan of Rs 2 lakh is also available with this card, featuring a repayment tenure of up to 60 months.

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