Fairfax commits $200 million liquidity assist to IIFL Finance amidst RBI ban

Fairfax India Holdings Company, backed by Prem Watsa and a longstanding investor in IIFL Finance Restricted, has introduced its dedication to supply liquidity assist amidst the latest Reserve Financial institution of India (RBI) embargo, efficient March 5, 2024, on the corporate’s gold mortgage disbursements.

“The RBI’s embargo has raised liquidity issues amongst the corporate’s traders and lenders. In response to those issues, Fairfax India has agreed to speculate as much as $200 million of liquidity assist on phrases to be mutually agreed and topic to relevant legal guidelines, together with regulatory approvals (if any),” IIFL Finance mentioned in a press launch.

• Additionally learn: RBI directs IIFL Finance to halt gold lending, permits servicing of present portfolio

“Now we have been long-term traders within the IIFL group of corporations and have full belief and confidence within the firm’s robust administration group led by Nirmal Jain and R Venkataraman. We’re assured that Nirmal and Venkat will take corrective actions to satisfy and exceed RBI’s compliance requirements,” mentioned Prem Watsa, Chairman of Fairfax India.

Nirmal Jain, Managing Director and Founding father of IIFL Finance, commented, “At this significant juncture, Fairfax India’s and Prem’s beneficiant provide to supply liquidity assist may be very well timed and motivating. We’re dedicated to complying totally with RBI’s directives and rising the enterprise below the regulator’s steering on the robust basis of compliance, threat administration, and honest practices.”