The Reserve Bank of India is going to change the rules of gold loan soon. According to Fitch Ratings, RBI will soon introduce new guidelines for this, which will bring clarity and transparency in the gold loan. According to Fitch Ratings, small players of gold loan business may find it a bit difficult with the new guidelines, but these guidelines can bring good opportunities for players with big gold loans like Muthoot Finance Limited and Manappuram Finance Limited.
On Tuesday, April 15, on Tuesday, the arrival of RBI’s gold loan guideline in the stock market also got the benefit. While Muthoot Finance shares were trending at 2038.70 with a rise of 1.6% around 2 pm, Manappuram’s shares were also trending 1.06% at 225.80.
This benefit will be from RBI’s guideline
According to Fitch Ratings, the new guideline of RBI will come on the gold loan, the uncertainty in this sector will end. Along with this, the gold loan sector will strengthen with a rapid pace, but in the midst of all this, the new guidelines of RBI will increase the paperwork slightly and this effect will be on non -banking financial institutions (NBFI). Let us tell you that last week there was a meeting of the Monitoring Policy of RBI, in which RBI Governor Sanjay Malhotra gave information about the new guideline coming on the gold loan. He also cut the repo rate by 25 basis points.
This deficiency in the rule of gold loan right now
Right now the gold loan company does not follow the Lone to Value (LTV) ratio. Also, some gold loan company takes service of fintech agents and third party companies for storage of gold jewelery pledged by customers, but earlier this work used to do this work on themselves. Let us tell you that the Reserve Bank of India does not consider the third party’s involvement in the gold loan. That is why RBI is preparing to bring a new guideline on gold loan.