There has been a sharp rise in gold loans in recent years. But there is a seedier side to this, as is evident from the red flag the RBI raised recently. Will the regulator s move protect customers?
The measure is part of RBI’s supervisory action over concerns around certain loan disbursement practices. IIFL Finance said it is extending full cooperation to the special audit team.
Gold loan companies request RBI to probe banks violating loan-to-value norms thehindubusinessline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehindubusinessline.com Daily Mail and Mail on Sunday newspapers.
India Business News: Gold loan companies are experiencing a surge in demand from semiurban and rural areas as the festive season approaches. The recent increase in gold pr
Data from the Reserve Bank of India (RBI) show outstanding gold loans at Rs 95,476 crore as on July 28, up 23.1% from a year earlier, a sharp acceleration from the single-digit growth in the preceding 12 months. Earlier this month, RBI doubled the limit on gold loans under the bullet repayment scheme — from Rs 2 lakh to Rs 4 lakh — for urban cooperative banks, subject to conditions. Central bank data show India owns more than 27,000 tonnes or 14% of the worlds gold, of which around 5,300 tonnes is pledged.