RBI slapped IIFL

Experts are warning that the Reserve Bank of India’s (RBI) decision to halt IIFL Finance from issuing new gold loans could potentially slow down the gold loan market. They noted that since IIFL is a significant player in the market with partnerships with various public and private banks, other traditional gold loan providers may need to review their compliance and regulatory procedures.Varun Sharma, co-founder of NBFC Advisory, remarked, "IIFL Finance is a major gold loan provider with partnerships with banks. Following this development, other traditional gold loan providers will likely reassess their compliance and operational procedures, which could impact short-term growth.Moreover, experts highlighted that the co-lending agreements between IIFL Finance and banks will be closely monitored. DCB Bank, one of IIFL Finance’s co-lending partners, stated that its co-lending portfolio has been “satisfactory” despite the regulatory action, indicating that the lender has adhered to a thorough due diligence process.