RBI to Introduce New Regulations for Gold Loans
News is coming from the Reserve Bank of India that RBI is planning to introduce uniform guidelines for Gold Loans. As per the information, these rules will be applied to all banks and non-banking financial companies (NBFCs). The agenda behind these rules is to bring fairness and clarity to gold loan practices because, as of now, different lenders follow different rules, and these rules confuse customers.
Also, a lot of inconsistencies and management-related concerns arise. For these new guidelines, RBI appealed to the public for their valuable feedback so that before finalising the rule, they can be made it properly.
Why Gold Loans Are Popular
Nowadays, gold loans are very popular between lenders and borrowers because it is easy to get a gold loan as compared to other loans in case the borrower has gold, and this loan has fast approval. People can use this money for their needs, whether it is for marriage, business, or any other activity.
RBI’s Decision
The Reserve Bank of India (RBI) on Wednesday proposed new rules for lending against gold jewellery as collateral, and these rules will be applied to all NBFCs or banks in the guideline RBI is going to explain how gold loans will be given
As mentioned earlier, these loans are very popular in which borrower can get money easily and quickly against their ornaments, and no questions are asked about this loan.
Currently, lenders like banks or NBFCs are following different rules when it comes to gold loans. So, RBI has decided to harmonise the rule for these lenders so that all institutions make sure that gold loans are given responsibly.
Sanjay Malhotra RBI Governor
This announcement was given by RBI Governor Sanjay Malhotra. He mentioned that Muthoot Finance or Mannapuram has to follow all the rules. After the announcement of Mr. Malhotra, the shares of NBFCs like Muthoot Finance and Mannapuram took a sharp dive of about 10% and 2.78%.
Mr Malhotra also appealed to the public to share their valuable feedback with RBI to reframe the rules for Gold Loans
As per the information, RBI is said to release a draft set of guidelines and has invited public feedback before finalising the rules
Please read other news:
Launch CMF by Nothing Phone 1 With 128GB Rom And Osm Performance, See Offer Price
TVS NTORQ 125: A Sporty Scooter, Full of Power and Style, Know Price
Launched Vivo V40 5G With 512GB Rom And 12GB Ram At This Price, See Features
Bring Home Honor X9b With 108 MP Camera And Amazing Performance, See Price
Best 4 Power Bikes Under Rs 1.25 Lakh : Affordable Powerhouses for the Ultimate Riding Experience
Please join our WhatsApp channel:
RBI to Introduce New Regulations for Gold Loans, RBI to Introduce New Regulations for Gold Loans RBI to Introduce New Regulations for Gold Loans RBI to Introduce New Regulations for Gold Loans, RBI to Introduce New Regulations for Gold Loans,