Fairfax India Holdings Corporation, backed by Prem Watsa and a longstanding investor in IIFL Finance Limited, has announced its commitment to provide liquidity support amidst the recent Reserve Bank of India (RBI) embargo, effective March 5, 2024, on the company’s gold loan disbursements.
“The RBI’s embargo has raised liquidity concerns amongst the company’s investors and lenders. In response to these concerns, Fairfax India has agreed to invest up to $200 million of liquidity support on terms to be mutually agreed and subject to applicable laws, including regulatory approvals (if any),” IIFL Finance said in a press release.
“We have been long-term investors in the IIFL group of companies and have full trust and confidence in the company’s strong management team led by Nirmal Jain and R Venkataraman. We are confident that Nirmal and Venkat will take corrective actions to meet and exceed RBI’s compliance standards,” said Prem Watsa, Chairman of Fairfax India.
Nirmal Jain, Managing Director and Founder of IIFL Finance, commented, “At this crucial juncture, Fairfax India’s and Prem’s generous offer to provide liquidity support is very timely and motivating. We are committed to complying fully with RBI’s directives and growing the business under the regulator’s guidance on the strong foundation of compliance, risk management, and fair practices.”