The Reserve Bank of India (RBI) has lifted the restrictions previously imposed on IIFL’s gold loan operations. This decision, revealed by the company in a press release on Thursday, marks the end of a curb by the central bank that began on March 4, 2024. During this period, IIFL Finance was prohibited from sanctioning, disbursing, or selling any of its gold loans.The RBI’s latest announcement is effective immediately, allowing IIFL Finance to resume its gold loan activities in compliance with all relevant laws and regulations. “The Company is committed to upholding the highest standards of compliance and will continue to ensure that the remedial actions taken are sustained,” read the press release by IIFL Finance. The lifting of these restrictions is expected to bolster IIFL Finance’s operations in the gold loan sector, which has been a crucial part of its financial services portfolio.In March, the Reserve Bank of India (RBI) instructed IIFL Finance to halt the sanctioning and disbursement of new gold loans. The directive also included a prohibition on assigning, securitizing, or selling any existing gold loans.The RBI cited “material supervisory concerns” regarding the company’s gold loan portfolio as the primary reason for this action. Among the issues highlighted were significant deviations in the assaying and certification of gold purity and net weight at the time loans were sanctioned.RBI identified significant discrepancies in the assaying and certification of gold purity and net weight at the time loans were sanctioned. In response to these concerns, the regulator initiated a special audit by an independent professional agency, which began on April 23, 2024.Despite the audit findings, IIFL Finance was allowed to continue servicing its existing gold loan portfolio, including loan collections and recoveries, as well as maintaining its other business operations.