In a significant move, the Reserve Bank of India (RBI) has lifted the restrictions placed on IIFL Finance Limited’s gold loan business. These restrictions, initially imposed on 4th March 2024, prevented the company from sanctioning, disbursing, or selling its gold loans. As of September 19, IIFL can fully resume its gold loan operations.

The ban earlier this year was a response to certain compliance issues flagged by the RBI, aimed at ensuring that IIFL aligned with regulatory standards. By halting its gold loan services, the RBI sought to push the company towards stricter internal controls and governance.

Over the past months, IIFL took corrective actions to address the issues raised by the regulator. The successful implementation of these remedial measures has now led to the ban being lifted.

IIFL Finance has confirmed that it will maintain the highest standards of compliance to avoid any future regulatory concerns. The lifting of restrictions comes as a relief to IIFL’s clients and the company itself, allowing them to access the gold loan market once again—a core part of IIFL’s business model.

With the resumption of services, IIFL is expected to regain its position as a key player in the gold loan sector, contributing to the broader financial ecosystem.