IIFL Finance Ltd. said the Reserve Bank of India (RBI) removed the restrictions imposed on the company’s gold loan business with effect from 19 September.

The restrictions, imposed on 4 March, prohibited the non-bank lender from sanctioning, disbursing, or assigning/securitizing/selling any of its gold loans, IIFL said in a stock exchange announcement.

IIFL received the communication from the RBI on 19 September and the central bank’s decision and allows the company to resume the sanctioning, disbursal, assignment, securitization, and sale of gold loans in compliance with all relevant laws and regulations, it added.

In March, the RBI ordered IIFL to stop sanctioning or disbursing gold loans or assigning/securitizing/selling any of its gold loans over certain material supervisory concerns in the company’s gold loan portfolio.

The central bank also asked the company to undergo a special audit, which started on 23 April, and implement the remedial actions.

“The company is committed to upholding the highest standards of compliance and will continue to ensure that the remedial actions taken are sustained,” IIFL said.

(Send feedback to editor@cornerofficejournal.com)