MUMBAI: 5 March 2024
RBI carried out an inspection of the firm on 31 March.
The Reserve Bank of India (RBI) on Monday asked IIFL Finance to stop the sanctioning and disbursement of gold loans, citing “material supervisory concerns” observed in the nonank financier’ sgold loan portfolio.
The central bank said the lapses, which comprised regulatory violations, adversely impact the interest of the customers. RBI had carried out a ninspection of the company regarding its financial position
ason 3l March 2023.
During the inspection, RBI found “serious deviations” in the assaying and certification of gold used as collateral for loans and during auctionsupon default.
In a statement, the central bank noted violations in the maximum allowed loan-to value ratio and found that IIFL Finance exceeded permitted cash collections, failed to adhere to the standard auction
process, and lacked transparency inthe fees charged by the company.
0 Comments