Bajaj Finance Crashes 6% After RBI’s Big Ban on Flexi Loans
On 7 August 2026, Indian financial markets witnessed sharp selling in non-banking financial companies (NBFCs). The biggest casualty was Bajaj Finance , which fell as much as 5.5–6%, while Bajaj Finserv dropped around 3–4%. The trigger was a major draft regulation released by the Reserve Bank of India (RBI). What Exactly Has RBI Proposed? The RBI has released draft amendments to the Non-Banking Financial Company (Credit Facilities) Directions. The key proposal is clear and strict: NBFCs shall only offer term loans and shall not offer any revolving credit products . Exception: Only those NBFCs that are specifically authorised by the RBI to issue credit cards (currently SBI Card and BoB Cards) are exempt. Term Loan vs Revolving Credit – Simple Explanation Feature Term Loan (Allowed) Revolving Credit (Proposed Ban) Loan Amount Fixed Flexible limit Repayment Pre-decided schedule (EMI or bullet) Borrower can repay & re-borrow Limit after repay...