RBL Bank, Bajaj Finance shares dropped up to 4% today. Here's why  

Shares of RBL Bank Ltd and Bajaj Finance Ltd took a beating in Tuesday's trade amid a media report that suggested that the Reserve Bank of India (RBI) has granted a one-year extension for their co-branded cards, less than what the two had requested for.

The apex bank has granted an extension until December 21, 2024, as per CNBC TV-18 sources. Bajaj Finance had on October 27 sought a longer extension for its credit card ties with RBL Bank, the report suggested.

At 2.44 pm, shares of RBL Bank were trading 4.15 per cent lower at Rs 261.25. Bajaj Finance shares were down 1.82 per cent at Rs 7,162.30.

Quoting sources, the CNBC-TV18 report suggested that the RBI letter pointed to serious deficiencies in the Bajaj Finance's adherence to RBI's guidelines. Any said further extension from the current one-year period would be subject to review, the report suggested.

To recall, Bajaj Finance had in a filing last month said that the RBI in its order dated November 15 directed the NBFC to stop sanction and disbursal of loans under its two lending products namely, ‘eCOM’ and ‘Insta EMI Card’, with immediate effect, particularly with respect to non-issuance of key fact statements to the borrowers under these two lending products and the deficiencies in the key fact statements issued in respect of other digital loans sanctioned by the NBFC.

Last month's supervisory restrictions were be remained in place till the deficiencies observed are made good by the company to the satisfaction of RBI.

"We wish to submit that Key Fact Statement are being issued for the loans booked under the above mentioned two lending products. However, based on the supervisory concerns raised by the RBI, we will undertake a detailed review of the KFS and implement requisite corrective actions to the satisfaction of the RBI at the earliest," Bajaj Finance had said last month.

In response to CNBC-TV18's query, RBL Bank said that both Bajaj Finance and RBL Bank would continue to issue the co-branded cards in-line with the RBI guidelines.