The Reserve Bank of India (RBI) has lifted restrictions on IIFL Finance’s gold loan business.

The banking regulator had imposed the restrictions on IIFL on 4 March, following “material supervisory concerns” observed in the Indian shadow lender’s portfolio.  IIFL was prohibited from sanctioning, disbursing, or assigning, securitising, selling any of its gold loans.

With the RBI lifting the restrictions, IIFL Finance can resume the sanctioning, disbursal, assignment, securitisation and sale of gold loans 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," IIFL Finance said.