RBI’s new guidelines for gold loans will not affect people taking gold loans of small amounts. Ministry of Finance has posted about this on social media platforms. In this post made on May 30, it is said that the government has studied RBI’s draft guidelines for gold loans.
The government has told RBI that people taking gold loans up to Rs 2 lakh should not face any problem due to the new guidelines. Due to this post of the Finance Ministry, shares of gold loan companies like Muthoot Finance and Manappuram Finance saw a rise.
New rules for gold loans may come into effect from January 1
RBI ‘s new guidelines for gold loans can be implemented from January 1, 2026. The Ministry of Finance’s post said, “@DFS_India has told @RBI that people taking small amounts of gold should not face any problem… Such guidelines need to be implemented at the ground level. Therefore, it would be appropriate to implement it only from January 1, 2026.” The Department of Financial Services (DFS) under the Finance Ministry has also suggested keeping customers taking small amounts of gold loans out of the scope of the new guidelines. This will enable them to get loans quickly.
RBI will consider the feedback received on the draft guidelines
The Finance Ministry has said that RBI is studying the feedback received on the draft guidelines. It hopes that the final instructions will be prepared only after considering the advice of all the parties involved in this issue. RBI had issued draft guidelines for gold loans on April 9. Its purpose is to remove the shortcomings of the existing rules related to gold loans. The draft guidelines include measures such as increasing underwriting, improving collateral management and monitoring the use of funds received from gold loans.
The new guidelines may affect the growth of gold loans
A source associated with the gold loan industry, on the condition of anonymity, said, “RBI’s draft norms emphasize on gold loan companies completing all underwriting before sanctioning a loan. At present, negligence is seen in the matter of underwriting. But, gold loan companies believe that this will increase the time taken by them to complete the process.” Recently, Crisil has said in its report that RBI’s new rules for gold loans will affect the business of gold loan companies. Their business growth may slow down due to this.
Shares of gold loan companies surge
On May 30, Muthoot Finance shares saw a tremendous rise. In the afternoon, the stock was trading 7.4 percent higher at Rs 2,219. Manappuram Finance’s share was at Rs 240.88 with a jump of 3.88 percent.
