RBI Relief to IIFL Finance: The banking sector regulator Reserve Bank of India has given a big relief to IIFL Finance. RBI has withdrawn the ban on the gold loan business of IIFL Finance. The company has given this information in the regulatory filing 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 has informed on September 19, 2024 that the ban on the gold loan business of IIFL Finance Limited has been lifted. On March 4, 2024, RBI had prohibited IIFL Finance from approving, disbursing or selling or securitizing or assigning gold loans.
RBI’s decision comes into effect immediately
The company told the exchange that this decision of RBI has come into effect immediately and the company has been allowed to sell gold loans under the approval, disbursement, assignment, securitization and compliance of gold loans under the rules and regulations and the company can start it again. IIFL Finance said, the company is committed to upholding high standards of compliance and will ensure that the necessary steps taken are continued smoothly going forward.
RBI had put a ban on this
On March 4, 2024, the Reserve Bank of India immediately banned IIFL Finance from approving and distributing gold loans. However, the company was allowed to continue the collection and recovery process from keeping the existing gold loan portfolio running. In its investigation, RBI found serious irregularities in the purity and weight of gold while approving loans in IIFL’s gold loan portfolio. RBI also detected violations in the loan to value ratio. After which this action was taken against the company.
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