RBI conducts special audit of IIFL Finance to address concerns identified in gold loan portfolio

IIFL Finance Ltd announced that the Reserve Bank of India (RBI) has concluded its special audit of the company, which was initiated in response to significant concerns identified in its gold loan portfolio, according to a report by CNBC-TV18 .

The RBI imposed supervisory restrictions on the non-banking financial company (NBFC) on March 4, 2024, following an earlier inspection of IIFL's financial condition conducted on March 31, 2023.

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The central bank's initial inspection revealed several irregularities in IIFL's gold lending operations, the report said. Some of these included cash disbursements and collections exceeding statutory limits, non-compliance with the standard auction process, lack of transparency in fees charged to clients, discrepancies in analysis and certification of purity and weight of gold, and Loan-to-Value (LTV) violations. report.