IIFL Finance Ltd announced that the Reserve Bank of India (RBI) has concluded its special audit of the company, which was initiated in response to significant concerns identified in its gold loan portfolio, according to a report by CNBC-TV18. 

The RBI imposed supervisory restrictions on the non-banking financial company (NBFC) on March 4, 2024 that followed an earlier inspection of the IIFL’s financial position conducted on March 31, 2023.

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The central bank’s initial inspection revealed several irregularities in IIFL’s gold loan operations, according to the report. Some of these included cash disbursals and collections exceeding statutory limits, non-compliance with the standard auction process, lack of transparency in customer charges, deviations in assaying and certifying gold purity and weight, and breaches in the Loan-to-Value (LTV) ratio.