Muthoot Finance shares surge 6% as FinMin bats for exemption of sub-Rs 2 lakh gold loans from RBI rules
Draft Directions on Lending Against Gold Collateral issued by the @RBI have been examined by @DFS_India under guidance of Union Minister for Finance and Corporate Affairs Smt. @nsitharaman. @DFS_India has given suggestions to the @RBI to ensure that the requirements of the… — Ministry of Finance (@FinMinIndia) May 30, 2025
Live Events
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
Shares of Muthoot Finance surged 6.15% to hit the day's high of Rs 2,193 on the BSE on Thursday after the Finance Ministry suggested that borrowers availing gold loans below Rs 2 lakh should be exempted from the Reserve Bank of India's (RBI) proposed draft guidelines.'@DFS_India has suggested that small ticket borrowers below Rs 2 lakh may be excluded from the requirements of these proposed directions to ensure timely and speedy disbursement of loans for such small ticket borrowers,' the finance ministry said in its tweet on the social media platform X.The Finance Ministry said that the draft guidelines issued by the Reserve Bank of India (RBI) on lending against gold collateral may be deferred and softened for small borrowers.In an official post on the social media platform X, the ministry said it has reviewed the RBI's proposed draft directions under the guidance of Union Finance Minister Nirmala Sitharaman and has given suggestions to the central bank.The recommendation was made to safeguard the interests of small-ticket borrowers and ease operational constraints for lenders, particularly non-banking financial companies (NBFCs) such as Muthoot Finance.'Draft Directions on Lending Against Gold Collateral issued by the @RBI have been examined by @DFS_India under guidance of Union Minister for Finance and Corporate Affairs Smt. @nsitharaman,' the post read.The Department of Financial Services (DFS), operating under the Finance Ministry, has stated that such guidelines may require more time for implementation at the field level and therefore could be made effective from January 1, 2026.The Finance Ministry's recommendation provides significant relief to gold financing companies, particularly NBFCs like Muthoot Finance, whose core business revolves around small-ticket gold loans.The draft norms, if implemented without relaxation, could have increased operational burdens and slowed disbursements, especially in rural and semi-urban markets where small loans dominate.By suggesting a delayed implementation timeline and calling for exemptions for loans under Rs 2 lakh, the ministry has signalled regulatory flexibility, which helps preserve business volumes, maintain customer access, and reduce compliance risks for lenders heavily dependent on gold-backed lending : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
34 minutes ago
- Hans India
Trade Setup for June 6: Nifty eyes RBI cue to breakout towards 25,000+
Indian equities saw a volatile but rangebound session on June 5, with the Nifty 50 closing at 24,751, up 131 points. Despite midday gains of nearly 200 points, the index gave up most of them before ending higher. Support at 24,500 remains strong, keeping the bullish bias intact. 🔑 Key Technical Levels Support: 24,500 Immediate Resistance: 24,900 Breakout Trigger: Sustained close above 24,900 could open doors to 25,000+ 🏦 Eyes on RBI Markets are pricing in a 25 bps repo rate cut by the RBI on June 6 — the third cut this year. A deeper cut could spark bullish sentiment and push Nifty past its current ceiling. 💹 Sector & Stock Highlights Outperformers: Realty, Pharma, Healthcare Underperformers: PSU Banks, Auto, Media Top Gainers: Eicher Motors, Trent, Dr Reddy's Top Laggards: IndusInd Bank, Tata Consumer, Axis Bank Buzzing Stocks: Reliance Industries (+1%) on JPMorgan upgrade DLF, Godrej Properties on continued realty rally Hindustan Zinc (+6%) amid record silver prices 📊 Broader Market Trends Nifty Midcap 100: +0.53% Nifty Smallcap 100: +0.96% (4-month high) 📉 Analyst Views Golden crossover on Nifty's daily chart hints at short-term uptrend (Rupak De) Base formation near 24,500 supports bullish continuation (Devarsh Vakil) Watch for a decisive break above 24,900 for momentum to pick up (Om Mehra) Strategy for Traders: Long bias if Nifty holds above 24,500 and breaks past 24,900 Cautious near resistance if RBI outcome disappoints Watch rate-sensitive sectors (Realty, Banks, Auto) closely post-policy
India Gazette
an hour ago
- India Gazette
J-K CM Omar Abdullah, Union Minister Jitendra Singh, inspect Katra railway station ahead of PM Modi's visit
Katra (Jammu and Kashmir) [India], June 5 (ANI): Jammu and Kashmir Chief Minister Omar Abdullah and Union Minister Jitendra Singh inspected the Katra railway station and the Vande Bharat train on Thursday ahead of Prime Minister Narendra Modi's visit on June 6. PM Modi will flag off the first Vande Bharat train to Kashmir on Friday. CM Omar Abdullah said, 'If I tell you that I have been waiting for this moment for a long time, it will still not be enough. This rail project began when I was in the 7th or 8th class. Now, even my children have started working after completing school and college. But, better late than PM will inaugurate the Vande Bharat services and it will benefit highway gets blocked, the airlines start selling tickets of Rs 5,000 for Rs 20,000, such issues will be solved from now on.' He further said that horticulture produce would be easily sent to the market. 'This project has set many records. The Chenab Bridge is higher than the Eiffel Tower. Anji Khad Bridge is the longest cable-stayed railway bridge in the country. There are many tunnels between Katra and Banihal. The project will be boost for economy and tourism. Now it will take 4 hours from Srinagar to Katra. We will ensure successful Amarnath Yatra,' he added. Union Minister Jitendra Singh said, 'In 2014, when PM Modi took oath as PM, the work on this bridge had almost stopped. There were controversies about the tallest bridge in the world as well, whether it would be possible to build such a bridge and whether it would be safe. There would be ease of travel and ease of business. Within 3 hours, you can reach Srinagar from here. The rush on the highway will reduce. This will become a part of Viksit Bharat.' The Northern Railway on Thursday announced the commencement of regular services of the Vande Bharat Express trains between Srinagar and Shri Mata Vaishno Devi Katra starting June 7. The services will operate six days a week, enhancing connectivity between the Kashmir Valley and the prominent pilgrimage destination. Two pairs of Vande Bharat Express trains, Train Nos. 26404/26403 and 26401/26402 were introduced on the Srinagar-Katra-Srinagar route, with an intermediate halt at Banihal. The trains were set to operate six days a week, excluding Wednesdays. (ANI)
India Gazette
an hour ago
- India Gazette
India and Kyrgyzstan's BIT comes into force, strengthen economic ties
New Delhi [India], June 5 (ANI): The new Bilateral Investment Treaty (BIT) between India and the Kyrgyz Republic comes into force on Thursday, marking a significant milestone in their bilateral economic relations. Union Minister for Finance and Corporate Affairs Nirmala Sitharaman and Minister of Foreign Affairs of the Kyrgyz Republic, Zheenbek Kulubaev Moldokanovich signed the Protocol and exchanged Instrument of Ratification of the Bilateral Investment Treaty (BIT) in New Delhi. According to Ministry of Finance, 'the Bilateral Investment Treaty (BIT) signed on 14th June, 2019, in Bishkek, between the Government of the Republic of India and the Government of the Kyrgyz Republic, enters into force with effect from today, i.e. 5th June 2025. This new BIT replaces the earlier agreement enforced on 12th May 2000, ensuring continuity in the protection of investments between the two nations.' The aim of this BIT is to promote and protect the interests of investors from both countries within each other's territories. The treaty incorporates several key features designed to create a balanced framework for investment. It highlights that the importance of sustainable development. Additionally, it also provides an enterprise-based definition of assets with an indicative inclusion list and a specific exclusion list, clarifying characteristics of investments such such as capital commitment, expectation of gain, risk assumption, and significance for the host state's development The treaty excludes matters relating to local government, government procurement, taxation, services supplied in the exercise of governmental authority, and compulsory licenses, thereby retaining sufficient policy space for the government. The BIT defines the core elements of the Treatment of Investment, aligning with customary international law, and includes provisions on national treatment, expropriation, and transfers. It also focus on matter related to removal of Most Favored Nation (MFN) clause, general and security exceptions and calibrated investor-state dispute settlement. 'The BIT balances the investor rights with the sovereign regulatory powers of both countries, and reflects a shared commitment to create a resilient and transparent investment climate. It is expected to further encourage cross-border investments and deepen economic cooperation between India and Kyrgyzstan,' the minstry of Finanace said. (ANI)
