In a significant regulatory move, the Reserve Bank of India (RBI) has imposed immediate restrictions on IIFL Finance, prohibiting the sanctioning and disbursing of gold loans due to substantial supervisory concerns identified within the company's gold loan portfolio.

• This development, announced, underscores the central bank's commitment to safeguarding customer interests amidst identified lapses in the financial institution's operations.
• Following an inspection of IIFL Finance's financial status as of March 31, 2023, the RBI unearthed several material concerns that necessitated immediate regulatory intervention.
• Notable among these were serious deviations in the assaying and certification of gold purity and net weight at both the loan sanctioning and auction stages, breaches in the Loan-to-Value ratio, and significant issues with cash transactions exceeding statutory limits.
• These lapses, according to the RBI, have direct implications on customer interests, prompting the need for a swift regulatory response.