RBI Slaps Penalty on IIFL Finance for Non-Compliance with Gold Loan Norms
The Reserve Bank of India has fined IIFL Finance Rs 3.10 lakh for not adhering to NBFC regulations. The penalty relates to failure in reimbursing excess funds from auctioned gold back to borrowers. RBI affirms the penalty is due to compliance deficiencies, not affecting company transactions.
The Reserve Bank of India (RBI) has levied a monetary penalty of Rs 3.10 lakh on IIFL Finance Limited. The penalty stems from the company's alleged failure to comply with the central bank's regulations governing Non-Banking Financial Companies (NBFCs).
According to an RBI statement released on Friday, the fine addresses IIFL Finance's neglect in returning surplus amounts garnered from the auction of gold pledged by borrowers. This action contravenes the provisions outlined in the RBI's Master Direction for Non-Banking Financial Companies, Scale Based Regulation, 2023.
While the central bank clarified that this enforcement is strictly related to regulatory compliance deficiencies, it further stated that the validity of transactions between IIFL Finance and its customers remains unaffected. The RBI's decision comes after a detailed inspection of the firm's financial position as of March 31, 2025, which prompted a notice and a subsequent explanation from the company.
(With inputs from agencies.)
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