IIFL Finance Limited

RBI imposed a penalty of Rs 3.10 lakh on IIFL Finance Limited for a compliance lapse in its gold loan auction process. The company failed to remit surplus auction proceeds, over and above the loan outstanding, to certain borrowers.

IIFL Finance Limited must absorb the penalty and remain compliant with RBI directions governing NBFC conduct, especially around gold loan recovery and auction surplus handling. The order itself does not impose a business restriction, but RBI noted that further action may still be initiated separately.

• section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934

RBI imposed a monetary penalty on IIFL Finance Limited for non-compliance with directions on asset classification. The company failed to classify certain restructured accounts as non-performing assets.

IIFL Finance Limited must bear the monetary penalty and remain compliant with RBI asset classification directions going forward. The release does not impose any new operational restriction, but RBI notes the penalty is without prejudice to any other action that may be initiated separately.

• section 58G(1)(b) read with section 58B(5)(aa) of the Reserve Bank of India Act, 1934

RBI has ordered IIFL Finance Ltd. to stop sanctioning and disbursing gold loans, and to stop assigning, securitising, or selling them. The company may continue servicing its existing gold loan portfolio.

IIFL Finance must immediately stop fresh gold-loan sanctions/disbursals and related sale/securitisation/assignment activity, but it may continue collections and recovery on its existing gold-loan book. The restriction stays in force until RBI’s special audit is completed and the company remedies the audit and inspection findings to RBI’s satisfaction.

• Section 45L(1)(b) of the Reserve Bank of India Act, 1934