Gold Loan Institutes on Radar of RBI took action about it know full impact

Gold Loan: For taking a gold loan, it is often said that it is a simple secured loan with less documentation. In this, money is received quickly and with less paperwork. However, RBI has kept a close watch on the institutions involved in financing this easy loan. Taking gold loan is very popular in India and due to this, RBI has issued new instructions for all the gold loan giving institutions, be it banks or gold loan finance companies. Know how you and gold financing companies are going to be affected.

RBI decisions taken 2 days ago

According to the decision of RBI 2 days ago, flaws have been found in the functioning of jewelers-institutions giving gold loans in this area and they are not working completely as per the regulation. First of all, the valuation of gold is not being decided in front of the customers taking gold loan. Secondly, despite checking and monitoring at the time of taking gold loan, complete transparency is not being maintained with the borrowers and they are being treated carelessly. Apart from this, in case of non-payment of loan amount by the customer, jewelery is also being auctioned and sold without adopting transparency.

What steps did RBI take in September?

The Reserve Bank of India lifted the ban on the gold loan business of IIFL Finance Limited (India Infoline) on 19 September 2024, after which the ban on approving gold loans has been lifted and the company can restart its gold loan business. Can.

After the strictness of RBI, a decline was seen in the shares related to gold business yesterday.

On Tuesday, October 1, a decline was seen in the shares of jewelers or gold loan institutions dealing in gold. Titan’s stock closed down more than 1 percent. There was a decline of about 4 percent in Muthoot Finance and it fell by 3.93 percent and closed at Rs 1951.95. Mannapuram Finance also slipped 1.87 percent and closed at Rs 197.58.

Gold loan makes good use of the gold kept in your house and in return you also get a loan at low interest. There are a large number of people taking gold loans in the country and taking and giving loans in this segment is largely related to the business of gold.

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