Bajaj Auto subsidiary receives RBI approval for NBFC business

In a filing on September 1, Bajaj Auto informed the stock exchanges that its subsidiary Bajaj Auto Consumer Finance had received a Certificate of Registration from the Reserve Bank (RBI) to begin a non-banking finance company (NBFC) business.

Bajaj Auto Consumer Finance would also conduct nonbanking financial institution business without accepting public deposits, according to the company.

According to Bajaj Auto, the license was received on August 31, 2023.

On July 9, this year, the two- and three-wheeler manufacturer applied to the Reserve Bank of India for an NBFC licence.

"...we would like to inform you that Bajaj Auto Consumer Finance Limited, the wholly-owned subsidiary of Bajaj Auto Limited, has received on 31 August 2023 from RBI a Certificate of Registration, bearing No. N-13.02465 dated 29 August 2023 under section 45-IA of the Reserve Bank of India Act, 1934 to commence/carry on the business of nonbanking financial institution without accepting public deposits, subject to the conditions given in the said certificate," the company said in the communication.

The RBI also included a disclaimer while issuing the licence. It said, "Reserve Bank of India neither accepts any responsibility nor guarantees the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for discharge of any liability by the company."

In 2021, Bajaj Auto announced the establishment of a 100% captive financing subsidiary, Bajaj Auto Consumer Financing, which would finance exclusively items made by the company.

Source: Media Reports