Bajaj Finance Lost ₹55,000 Crore in Value Over a Draft Proposal. Not a Final Rule.

fell nearly 6% on Friday after the RBI proposed restricting NBFCs from offering revolving credit facilities, requiring them to shift toward fixed-term loans instead. Bajaj Finserv fell alongside it, since Bajaj Finance is its most valuable subsidiary. Combined, the two lost roughly ₹55,000 crore in market value in a single session. Worth understanding what's actually being proposed. Revolving credit lets a borrower draw down, repay, and draw down again from the same sanctioned limit, similar to how a credit card works. A term loan, by contrast, has a fixed amount and a set repayment schedule, once repaid, the limit doesn't refresh. The RBI's draft would push most NBFCs toward the term loan structure, exempting only credit card issuers. Here's why this hit Bajaj Finance harder than most peers. Revolving products, its well-known Flexi Loan line, make up around 15% of the company's consolidated AUM, and 20% of standalone AUM specifically. These products also generate ongoing fee income beyond just interest, since customers pay to maintain access to a reusable credit limit, fee income that could shrink if products get redesigned as simple term loans. Worth being precise about the timeline too. This is a draft proposal, open for industry feedback until August 28, not a final regulation. The stock move reflects markets repricing future earnings expectations around a real possibility, not reacting to something that's already locked in. The takeaway. A draft regulatory proposal can move a stock by tens of thousands of crores before it's even finalized, because markets price in probability-weighted future impact immediately, not just confirmed outcomes. Worth watching how the actual final rules differ from this draft once the consultation period closes.