RBI Policy
To issue comprehensive guidelines on loans against gold
This story was originally published at 11:33 IST on 9 April 2025
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MUMBAI – In order to harmonise the regulations around loans against gold jewellery for all regulated entities and to address the concerns observed around them, the Reserve Bank of India has decided to review and issue comprehensive guidelines on lending against gold. The draft norms will be issued for public comments on Wednesday.
"In order to harmonise guidelines across various types of regulated entities, to the extent possible, keeping in view their differential riskbearing capabilities, we shall issue comprehensive regulations on prudential norms and conduct related aspects for such loans," RBI Governor Sanjay Malhotra said while announcing the outcome of the Monetary Policy Committee meeting Wednesday.
Gold loans have emerged as the fastest category in the deployment of bank credit, revealed the latest data released by the Reserve Bank of India. At INR 1.91 trillion, banks' credit outstanding against gold jewellery on Feb. 21 marked a massive 87.4% jump on year. A year ago, the rise was much lower at 15.2%.
Post this announcement, the shares of major non-banking finance companies offering gold loans slumped. At 1107 IST, the shares of Muthoot Finance fell 10% to INR 2,063.40 and Manappuram Finance fell 2.3% to INR 223.50 on the National Stock Exchange. End
Reported by Kshipra Petkar
Edited by Deepshikha Bhardwaj
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