The RBI has issued a letter of displeasure to Bajaj Finance over deficiencies in its co-branded credit card operations, citing risks to customers and weak internal controls.
Bajaj Finance Ltd., one of India’s leading non-banking financial companies (NBFCs), has reportedly received a “letter of displeasure” from the Reserve Bank of India (RBI) regarding its co-branded credit card operations.
The central bank has raised concerns over the company’s internal controls, risk management practices, and its role in co-branding arrangements with partner banks.
RBI Raises Concerns Over Risk and Internal Controls
As per reports, the RBI has criticised Bajaj Finance for not proactively identifying operational gaps and vulnerabilities, leading to significant risks for customers. The letter refers to an earlier communication dated 31st January and the company’s response on 22nd February, indicating that previous concerns had not been adequately addressed.
Further, the RBI has pointed out that Bajaj Finance has taken a reactive rather than a proactive approach in handling regulatory and compliance matters. The central bank also challenged the company’s assertion that its role was limited to customer solicitation, stating that Bajaj Finance holds internal responsibilities in co-branding arrangements and has access to sensitive customer data.
Regulatory Directives and Future Compliance Measures
The RBI has issued strict directives to Bajaj Finance to enhance oversight and compliance in its co-branded credit card business. The key directives include:
Ensuring strict adherence to regulatory timelines.
Seeking independent validation through an external audit, with prior approval from the RBI.
Conducting audits covering data security, IT infrastructure, information security, and cybersecurity controls.
Obtaining explicit approval from the RBI’s Department of Supervision before re-engaging in any co-branding arrangements.
Bajaj Finance Share Performance
As of April 03, 2025, at 11:20 AM, Bajaj Finance share price is trading at ₹8,495.85 per share, reflecting a decline of 2% from the previous day’s closing price. Over the past month, the stock has registered a loss of 1.53%.
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