MUMBAI: RBI has lifted the restrictions placed on IIFL Finance‘s gold loan operations, effective immediately.
In a communication dated Sept 19, 2024, RBI allowed the company to resume sanctioning, disbursal, assignment, securitisation and sale of gold loans, provided all relevant laws and regulations are followed.
The restrictions were initially imposed on March 4 of this year after an RBI supervision uncovered irregularities in IIFL Finance’s gold loan business.These included exceeding loan limits, deviating from gold assaying and certification standards, breaching the loan-to-value ratio, and conducting excessive cash transactions. RBI had stated that these practices compromised customer interests.
In a statement to exchanges, IIFL said it was committed to maintaining high standards of compliance and ensuring that the remedial actions it has implemented are upheld. As of Dec 2023, IIFL Finance’s gold loan portfolio stood at Rs 24,692 crore, accounting for 32% of its loan book.
In a communication dated Sept 19, 2024, RBI allowed the company to resume sanctioning, disbursal, assignment, securitisation and sale of gold loans, provided all relevant laws and regulations are followed.
The restrictions were initially imposed on March 4 of this year after an RBI supervision uncovered irregularities in IIFL Finance’s gold loan business.These included exceeding loan limits, deviating from gold assaying and certification standards, breaching the loan-to-value ratio, and conducting excessive cash transactions. RBI had stated that these practices compromised customer interests.
In a statement to exchanges, IIFL said it was committed to maintaining high standards of compliance and ensuring that the remedial actions it has implemented are upheld. As of Dec 2023, IIFL Finance’s gold loan portfolio stood at Rs 24,692 crore, accounting for 32% of its loan book.