By Dimpal Gulwani and Siddhi Nayak BENGALURU/MUMBAI (Reuters) -Shares of India's IIFL Finance surged 13% on Friday, after the country's central bank revoked an earlier ban on the non-bank lender's gold loan business.

IIFL Finance Ltd.’s shares surged to their highest in more than six months after India’s central bank lifted restrictions on its gold-backed lending business.

IIFL Finance Limited shares on Friday (September 20) experiences a sharp increase in its stock price. This surge in stock prices was in response to a major announcement from the Reserve Bank of India (RBI).

IIFL Finance said on Thursday that India's central bank has lifted the restrictions on the company's gold loan business, in what would be the removal of a key overhang on the lender. The Reserve Bank of India (RBI) in March ordered the company to stop offering gold loans,

Shares of IIFL Finance rose as much as 13 per cent to Rs 560.60 after the Reserve Bank of India ( RBI ) lifted restrictions on the company' gold loan business. The RBI had imposed restrictions on IIFL for disbursing gold loans on March 4.

Shares in India's IIFL Finance jumped about 13% on Friday, after the country's central bank lifted restrictions on the non-banking financial company's gold loan business, removing a key overhang on its financials and stock.