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Reuters
15 hours ago
- Business
- Reuters
India cenbank set to ease rules for small-ticket gold loans, governor says
MUMBAI, June 6 (Reuters) - India's central bank will release final regulations for gold lending by Monday, with more relaxed norms for small-ticket lending, governor Sanjay Malhotra said on Friday. In April, the Reserve Bank of India had proposed stricter rules for monitoring and disbursement of gold loans, which are often used by low-income borrowers. The RBI had sought comments on the proposed rules by the middle of May. Last week, the federal finance ministry sought relaxations to the proposed rules, urging the central bank to ensure that small borrowers are not "adversely impacted". The RBI plans to do away with credit appraisal, or the process of evaluating a borrower's creditworthiness, for gold loans up to 250,000 rupees ($2,915) per borrower, Malhotra said in a post-policy press conference in Mumbai. The RBI will also look to increase the loan-to-value ratio for the small-ticket loans to 85% from 75% currently, he said. Moreover, going forward, monitoring of funds lent out will only be needed for so-called priority sector gold loans, the governor said. Shares of Manappuram Finance ( opens new tab rose 4%, while those of Muthoot Finance ( opens new tab and IIFL Finance ( opens new tab gained about 7% and 5%, respectively, on Friday. Separately, the RBI will review and tweak bank ownership guidelines, if needed, Malhotra said. The regulator is considering making it easier for foreign financial institutions to buy larger stakes in Indian lenders, Reuters reported earlier this week. ($1 = 85.7500 Indian rupees)
Yahoo
15 hours ago
- Business
- Yahoo
India cenbank set to ease rules for small-ticket gold loans, governor says
MUMBAI (Reuters) -India's central bank will release final regulations for gold lending by Monday, with more relaxed norms for small-ticket lending, governor Sanjay Malhotra said on Friday. In April, the Reserve Bank of India had proposed stricter rules for monitoring and disbursement of gold loans, which are often used by low-income borrowers. The RBI had sought comments on the proposed rules by the middle of May. Last week, the federal finance ministry sought relaxations to the proposed rules, urging the central bank to ensure that small borrowers are not "adversely impacted". The RBI plans to do away with credit appraisal, or the process of evaluating a borrower's creditworthiness, for gold loans up to 250,000 rupees ($2,915) per borrower, Malhotra said in a post-policy press conference in Mumbai. The RBI will also look to increase the loan-to-value ratio for the small-ticket loans to 85% from 75% currently, he said. Moreover, going forward, monitoring of funds lent out will only be needed for so-called priority sector gold loans, the governor said. Shares of Manappuram Finance rose 4%, while those of Muthoot Finance and IIFL Finance gained about 7% and 5%, respectively, on Friday. Separately, the RBI will review and tweak bank ownership guidelines, if needed, Malhotra said. The regulator is considering making it easier for foreign financial institutions to buy larger stakes in Indian lenders, Reuters reported earlier this week. ($1 = 85.7500 Indian rupees) Sign in to access your portfolio
Yahoo
30-05-2025
- Business
- Yahoo
India federal finance ministry seeks relaxation in central bank's gold loan proposals
MUMBAI (Reuters) -India's federal finance ministry has sought relaxations in the new rules on gold loans proposed by the central bank, according to a post on its official social media handle. The department of financial services under the finance ministry has asked the Reserve Bank of India to ensure that the needs of small gold loan borrowers are not "adversely impacted", a post on the ministry's verified handle on social media platform X said. In April this year, the RBI had proposed tighter rules for monitoring and disbursement of gold loans, often used by low-income borrowers. The tighter rules came after such loans surged nearly 30% between September and February. In its post, the finance ministry said small ticket borrowers below 200,000 rupees ($2,344.05) should be excluded from the tighter rules to ensure "timely and speedy disbursement of loans". The ministry also proposed that the new rules not be implemented before January 1, 2026, to ensure the ground staff at lenders are adequately prepared. The central bank had sought comments on its proposed rules by the middle of May. The final rules are yet to be issued. On the day, Muthoot Finance rose 4.9% and Manappuram Finance traded 0.5% higher as of 10:34 a.m. IST. IIFL Finance was down 0.6%. ($1 = 85.3225 Indian rupees) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
30-05-2025
- Business
- Reuters
India federal finance ministry seeks relaxation in central bank's gold loan proposals
MUMBAI, May 30 (Reuters) - India's federal finance ministry has sought relaxations in the new rules on gold loans proposed by the central bank, according to a post on its official social media handle. The department of financial services under the finance ministry has asked the Reserve Bank of India to ensure that the needs of small gold loan borrowers are not "adversely impacted", a post on the ministry's verified handle on social media platform X said. In April this year, the RBI had proposed tighter rules for monitoring and disbursement of gold loans, often used by low-income borrowers. The tighter rules came after such loans surged nearly 30% between September and February. In its post, the finance ministry said small ticket borrowers below 200,000 rupees ($2,344.05) should be excluded from the tighter rules to ensure "timely and speedy disbursement of loans". The ministry also proposed that the new rules not be implemented before January 1, 2026, to ensure the ground staff at lenders are adequately prepared. The central bank had sought comments on its proposed rules by the middle of May. The final rules are yet to be issued. On the day, Muthoot Finance ( opens new tab rose 4.9% and Manappuram Finance ( opens new tab traded 0.5% higher as of 10:34 a.m. IST. IIFL Finance ( opens new tab was down 0.6%. ($1 = 85.3225 Indian rupees)
Yahoo
30-05-2025
- Business
- Yahoo
India federal finance ministry seeks relaxation in central bank's gold loan proposals
MUMBAI (Reuters) -India's federal finance ministry has sought relaxations in the new rules on gold loans proposed by the central bank, according to a post on its official social media handle. The department of financial services under the finance ministry has asked the Reserve Bank of India to ensure that the needs of small gold loan borrowers are not "adversely impacted", a post on the ministry's verified handle on social media platform X said. In April this year, the RBI had proposed tighter rules for monitoring and disbursement of gold loans, often used by low-income borrowers. The tighter rules came after such loans surged nearly 30% between September and February. In its post, the finance ministry said small ticket borrowers below 200,000 rupees ($2,344.05) should be excluded from the tighter rules to ensure "timely and speedy disbursement of loans". The ministry also proposed that the new rules not be implemented before January 1, 2026, to ensure the ground staff at lenders are adequately prepared. The central bank had sought comments on its proposed rules by the middle of May. The final rules are yet to be issued. On the day, Muthoot Finance rose 4.9% and Manappuram Finance traded 0.5% higher as of 10:34 a.m. IST. IIFL Finance was down 0.6%. ($1 = 85.3225 Indian rupees)
