News > RBI bars IIFL Finance from sanctioning or disbursing gold loans

RBI bars IIFL Finance from sanctioning or disbursing gold loans

The Reserve Bank of India (RBI) said IIFL Finance Ltd. can, however, continue to service its existing gold loan portfolio through the usual collection and recovery processes. The RBI said its inspection of IIFL’s financial position has revealed material supervisory concerns in the gold loan portfolio, including serious deviations in assaying and certifying purity and net weight of the gold at the time of sanction of loans, and at the time of auction upon default.