RBI Flags Gaps In Bajaj Finance’s Co-Branded Credit Card Business

The Reserve Bank of India (RBI) has issued a letter of displeasure to Bajaj Finance regarding its co-branded credit card business.

The RBI letter states that Bajaj Finance has not proactively addressed gaps and vulnerabilities, posing risks to customers. It also references previous communications from January 31 and February 22. The letter highlights concerns over a reactive approach, lack of internal controls, and responsibility in co-branding arrangements. Bajaj Finance is directed to ensure adherence to timelines, conduct external audits with RBI approval, and monitor data security measures. If the company intends to re-engage in co-branding, it must obtain explicit approvals from the RBI.

Bajaj Finance had earlier announced the cessation of new co-branded credit card sourcing with RBL Bank and DBS Bank.