Bajaj Finance, Bajaj Finserv shares fall up to 5% on RBI's new proposal for NBFCs

This restriction, however, will not apply to NBFCs already authorised to issue credit cards, the central bank said.

Shares of Bajaj Finance fell 4.5% to trade at Rs 1098.10 apiece on the BSE, while those of Bajaj Finserv dropped 3% to Rs 2020.35 on the BSE.

"NBFCs shall only offer credit products which are like term loans and shall not offer any revolving credit products. Provided that the aforesaid restriction shall not be applicable to an NBFC authorised by the Reserve Bank to issue credit cards," the central bank said in the circular released on Thursday.

The amendment will come into force immediately after the final guidelines are issued.

Also Read |RBI plans to bar NBFCs from offering revolving credit without approval

A term loan, on the other hand, refers to a fund-based credit facility of a fixed principal amount, disbursed in one or more instalments and repayable either as periodic instalments or as a bullet payment on the stated due date. Once disbursed, the sanctioned limit of a term loan cannot be restored or replenished upon repayment of either the whole or a part of the principal amount.

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