I. RBI Restrictions on IIFL finance
Ban on grant and disbursement of bad loans | Do not give bad loans
RBI Restrictions
The Reserve Bank of India (RBI) has imposed restrictions on IIFL finance. These orders will come into effect immediately. The RBI said that this decision was taken after identifying several supervisory lapses in the company's PCD loans department. The RBI stated that it has detected irregularities in testing the purity of crude oil, load-to-value ratio, sanctioning of crude oil loans, errors in the calculation of net weight during an auction of crude oil, non-compliance of norms in conducting auctions, and lack of transparency in charges collected from consumers.
It explained that such activities not only fall under the purview of regulatory norms but also have a negative impact on the interests of consumers. However, the RBI said that the collection and recovery process services related to the bad loans already given by the company will continue as usual.
Only if the defects are rectified..: IIFL Finance offers various types of loan services. However, the restrictions imposed by the RBI will be limited to unsecured loans. The RBI has said that these sanctions will be imposed based on the financial condition of IIFL Finance by March 31, 2023. After the completion of the special audit by RBI, if the company rectifies the deficiencies found in it, then the sanctions will be reviewed.
II. RBI sanctions on JM Financial
Hyderabad: No loans on shares and debentures
The Reserve Bank of India (RBI) has banned JM Financial Products. It was revealed on Tuesday that it has come into effect immediately. It is said that the same applies to the grant and distribution of IPO loans. The company has been permitted to collect existing loans.
RBI said that this decision has been taken in the wake of identifying some serious flaws in giving loans for IPOs and NCDs. The RBI said that it has taken these steps after reviewing some of the reports submitted by JM Financial to the markets regulator SEBI.
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