Reserve Bank of India imposes monetary penalty on Bajaj Finance Limited

Last updated: 07 January 2021

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The Reserve Bank of India (RBI) has levied a significant monetary penalty of ₹2.50 crore on Bajaj Finance Limited. This fine was imposed due to the company's failure to comply with RBI directions concerning risk management in outsourcing financial services and the Fair Practices Code. Specifically, Bajaj Finance was found to have not ensured its recovery agents avoided harassing or intimidating customers during debt collection, leading to persistent complaints.

Reserve Bank of India Date :Jan 05, 2021 The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2.50 crore (Rupees Two crore Fifty lakh only) on Bajaj Finance Limited, Pune (the company), by an order dated January 05, 2021, for violation of (i) directions issued by RBI on Managing

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1 Year PLAN

1999

(Excl. of GST ₹359)

BEST VALUE

2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

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FAQ :

The Reserve Bank of India has imposed a monetary penalty of ₹2.50 crore on Bajaj Finance Limited.

Bajaj Finance Limited was fined for violating RBI directions on managing risks in outsourcing financial services and the Fair Practices Code, particularly concerning the conduct of its recovery agents.

The penalty was imposed because Bajaj Finance failed to ensure its recovery agents did not resort to harassment or intimidation of customers during debt collection efforts, and there were persistent complaints about their collection methods.

The violations pertain to directions issued by the RBI on Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs and the Fair Practices Code for applicable NBFCs.

No, this action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company with its customers.