RBI Relief To IIFL Finance: Banking sector regulator Reserve Bank of India has greatly relieved IIFL Finance. RBI has withdrawn the ban on the company’s gold loan business. The company has disclosed this information in its regulatory filings with the stock exchanges.
IIFL Finance Will Be Able To Distribute Gold Loans Again
IIFL Finance said in a regulatory filing with the stock exchange that the Reserve Bank of India was informed on September 19, 2024, that the ban on the gold loan business of IIFL Finance Limited had been lifted. On March 4, 2024, RBI banned IIFL Finance from approving, disbursing, selling, securitizing or assigning gold loans. RBI’s decision comes into effect with immediate effect
The company told the exchange that this RBI decision was immediately implemented. Under the rules and regulations, the company can sell gold loans under approval, disbursement, assignment, securitization, and compliance, and it can start again. IIFL Finance said the company is committed to upholding the high standards of compliance and will ensure that the necessary steps are followed smoothly in the future.
RBI Had Banned It
On March 4, 2024, the Reserve Bank of India immediately banned IIFL Finance from approving and distributing gold loans. However, the company could continue the collection and recovery process by maintaining the existing gold loan portfolio. In its investigation, RBI found severe irregularities in the purity and weight of gold while approving the loan in IIFL’s gold loan portfolio. RBI also detected violations in the loan-to-value ratio. After this, action was taken against the company.
