IIFL Finance has announced that the Reserve Bank of India (RBI) has lifted the restrictions imposed on its gold loan business, effective immediately. The restrictions, originally imposed on March 4, 2024, prohibited the company from sanctioning, disbursing, or assigning/securitising/selling any of its gold loans.
In a statement via exchanges, the company shared that this decision by RBI allows them to fully resume their gold loan operations in compliance with all relevant regulations. IIFL Finance expressed its commitment to maintaining high standards of compliance and ensuring that remedial actions remain in place.
Shares of IIFL Finance closed 6.02% lower at ₹497.00 on September 19, mainly due to concerns over a potential credit downgrade resulting from the earlier ban. However, this positive update on the lifting of the gold loan ban, announced post-market hours, is expected to influence the stock performance positively in the next trading session.
