RBI initiates special audit in IIFL Finance over gold loan disbursement

New Delhi. In a significant move aimed at enhancing transparency and accountability in the financial sector, the Reserve Bank of India (RBI) has initiated a special audit on IIFL Finance due to its gold loan disbursement practices. The decision comes in view of the concerns raised by the regulatory body regarding the lending processes adopted by these institutions. The audit began on April 23, 2024 and the direction for the special audit came after the restrictions imposed by the RBI on March 4, 2024 In which the distribution of new gold loans has been suspended by the concerned company till the satisfactory completion of the audit process.

According to the company’s filing on NSE, “In compliance with the requirements under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the special audit directed by the Reserve Bank of India (RBI) today, has commenced from April 23, 2024. This follows the RBI ban dated March 4, 2024, which had suspended the disbursement of fresh gold loans by our company till the satisfactory completion of the said audit.” By closely examining the practices, the central bank aims to identify any omissions or anomalies and take appropriate remedial measures.

In response to the RBI directive, the Company has reaffirmed its commitment to extend full cooperation to the special audit team. By collaborating closely with the auditors, the company aims to facilitate comprehensive and thorough scrutiny of its lending processes. Shares of IIFL Finance on Tuesday closed at Rs 410.35, up 0.49 per cent from the previous day’s closing. The 52-week high and low of the stock are Rs 682.91 and Rs 304.13 respectively. According to BSE Analytics, the stock has given a negative return of 6.82 per cent in the last 1 year.