It will not be easy to get a gold loan now

RBI signals tightening | Stocks fall

Getting a loan against gold will no longer be as easy as it used to be. RBI GovernorSanjay Malhotrahas indicated that the rules related to gold loans will be tightened. The impact of this was immediately seen whenMuthoot Finance, Mannapuram FinanceandIIFL FinanceShares fell.

👉 What did the governor say?

Sanjay Malhotra said that uniform rules will now apply to gold loans given by banks and non-banking financial companies (NBFCs). These rules are likely to be stricter, which will increase the challenges for institutions operating in this sector.

📉 Shares plunge

• Muthoot Finance: 5.29% down

• IIFL Finance: Down 2.19%

• Mannapuram Finance: 1.58% down

🔍 RBI’s concern – increasing irregularities

The RBI has found several flaws in its audit report:

• Fintech agents should be responsible for accurate weighing and storage of gold.

• Lack of background checks

• Auction of pledged gold without due process

• Lack of oversight on the final use of funds

🎯 What could be the next step?

The RBI wants to ensure that:

• All lenders to follow standard protocols

• The gold loan process should be more transparent.

• Illegal or unethical business practices stopped

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