Latest news with #UnionFinanceMinistry
&w=3840&q=100)
Business Standard
10 hours ago
- Business
- Business Standard
FinMin suggests RBI to give relief for borrowers under ₹2 lakh gold loan
In April, the RBI released draft norms mandating, among other requirements, that borrowers furnish proof of ownership for the gold used as collateral New Delhi The Union Finance Ministry has suggested that small-ticket borrowers with gold loans below ₹2 lakh may be excluded from the requirements of the proposed draft Directions on Lending Against Gold Collateral to ensure timely and speedy disbursement of loans. The Finance Ministry stated that the draft directions issued by the Reserve Bank of India (RBI) were examined by the Department of Financial Services (DFS) under the guidance of Union Finance Minister Nirmala Sitharaman. DFS has also recommended that the guidelines require sufficient time for implementation at the field level and should therefore be made effective from 1 January 2026. In April, the RBI released draft norms mandating, among other requirements, that borrowers furnish proof of ownership for the gold used as collateral. The norms also stated that lenders must keep a record of the verification of ownership. 'In case the original receipts of purchase of gold collateral are not available, a suitable document/declaration obtained from the borrower shall be prepared explaining how the ownership of the collateral has been determined,' the draft added. It further noted that the pledge of gold collateral must comply with the lender's suspicious transaction reporting policy under relevant regulatory directions. The draft guidelines defined the types of gold eligible for collateral: only gold jewellery, ornaments and specified gold coins qualify. Gold ornaments refer to items meant for adornment of objects, decorative items or utensils made of or manufactured from gold, excluding those that fall under the definition of gold jewellery. These clauses may disadvantage small borrowers, particularly women and individuals in rural areas who typically hold gold in the form of objects. The RBI is currently reviewing the feedback received on the draft guidelines. 'It is expected that concerns raised by various stakeholders, as well as the feedback received from the public, will be duly considered by the RBI before finalising the directions,' DFS noted, adding that the suggestions have been formally forwarded to the RBI. The RBI released the draft regulations following a joint supervisory review in April 2025 that uncovered several lapses in gold loan practices. These included inadequate monitoring of loan-to-value (LTV) ratios, flawed risk evaluation methods, misuse of third-party agents and a lack of transparency in auction processes. In its annual report, the RBI directed lenders to promptly assess and rectify weaknesses in their gold loan operations. According to the proposed regulations, lenders must maintain an LTV ratio below 75 per cent throughout the tenure of the loan, including the interest component. This revision could reduce disbursements under bullet repayment models from the current 65–68 per cent to approximately 55–60 per cent of the pledged gold's value. Loans structured with equated monthly instalments (EMIs), where the principal is repaid gradually, may be allowed slightly higher LTVs. The guidelines also suggest that financial institutions cap the proportion of gold loans in their overall lending portfolios. This cap could be reviewed periodically based on factors such as collection efficiency, portfolio risk and capital strength. Muhtoot Finance shares were up 7.12% to trade at Rs 2212.85 while IIFL Finance shares were up 2.23% to trade at R 437 a share following the finance ministry comments.
The Hindu
11 hours ago
- Business
- The Hindu
Thangam Thennarasu thanks Centre for instructing RBI to reconsider gold loan guidelines
Tamil Nadu Finance Minister Thangam Thennarasu on Friday (May 30, 2025) thanked the Union Finance Ministry for instructing the Reserve Bank of India (RBI) to ensure its draft regulations on gold loans do not adversely impact small borrowers. In a post on X, Mr. Thennarasu said the draft gold loan guidelines were anti-poor, hurting small borrowers. Referring to Tamil Nadu Chief Minister M.K. Stalin's letter to Union Finance Minister Nirmala Sitharaman, urging her intervention to advise the RBI to reconsider the proposed restriction in the Reserve Bank of India (Lending Against Gold Collateral) Directions, 2025, Mr. Thennarasu said it is a major victory for people, as a result of the relentless efforts of Mr. Stalin.
News18
3 days ago
- Business
- News18
India-US Trade Deal Could Boost Exports, Says Finance Ministry Report
Last Updated: A successful US-India trade deal could boost exports and unlock new markets, said the Finance Ministry. Trade Minister Piyush Goyal visited Washington to advance talks. A successful trade agreement between India and the US could boost exports and unlock new market access, the Union Finance Ministry said in its monthly economic review on Tuesday. 'A successful US-India trade agreement could flip current headwinds into tailwinds, opening up new market access and energising exports," the report said. Union Trade Minister Piyush Goyal visited Washington last week to advance trade talks, with both sides aiming to sign an interim agreement by early July. New Delhi is seeking to clinch a trade deal with the U.S. within the 90-day pause on tariff hikes announced by US President Donald Trump on April 9 for major trading partners, which includes a 26% tariff on imports from India. The US is India's largest trading partner, with bilateral trade totalling about $129 billion in 2024. The trade balance shows that India runs a $45.7 billion surplus with the United States. The Union Finance Ministry report also said that the government's direct tax exemptions, fiscal measures and recent rate cuts from the central bank could accelerate the recovery and lift growth towards the upper end of forecasts of 6.3% to 6.8% in the current fiscal year. Government capital spending is playing a 'pivotal role" in supporting economic activity, and shielding the economy from global shocks, the report said, noting that personal income tax cuts and the recent rate reduction by the central bank are also expected to spur consumption and private investment. India has the potential to remain as one of the most promising destinations for investment amid ongoing global uncertainty, it said. The report added that the Indian rupee has remained relatively stable and that foreign exchange reserves continue to provide a cushion against external shocks. First Published: May 27, 2025, 23:07 IST
Mint
23-05-2025
- Business
- Mint
Bengaluru tech founder's BIG move after SBI manager faces backlash over language row: ‘Do not want my non-Kannada…'
A Bengaluru based tech founder has had enough of what he calls the city's 'language nonsense' and he's decided to shift his company from Bengaluru to Pune. The reason? He does not want his staff to become a 'victim' of the Kannada language row that refuses to die down. "Today I took a decision to wind up our Bangalore office in the next 6 months and move it to Pune. If this language nonsense is to continue, I do not want my non Kannada speaking staff to be the next "victim". This idea was mooted by the staff themselves. I agreed to their POV," wrote the founder. The founder's post The incident reportedly took place in Chandapura, a southern suburb of Bengaluru. A video of the episode quickly made its rounds on social media, drawing widespread attention and sparking conversation. The founder's decision to shift from Pune to Bengaluru to save his staff from becoming 'victims' of the langugae uproar, however, did not go very well with netizens. Several X users pointed out that he and his staff should have learned the Kannada language instead. 'Sir you earn profits in Karnataka but no effort to learn their language?? Not a good gesture,' commented one user. ' At least some efforts should be made to learn kannada. Learning few sentences in kannada will help a lot for comfortable stay in karnataka. Leaving Bengaluru is not a wise decision. Anybody can work/live anywhere in this country. Nobody has any right to push a person out of a region,' added a second person. The SBI manager's now viral video sparked widespread outrage, with sharp criticism pouring in from Kannada activists and political leaders. Among them was Bengaluru South MP Tejasvi Surya, who called the manager's remarks 'not acceptable' in a post on X. 'If you're working in customer-facing roles in Karnataka—especially in sectors like banking—you must be able to communicate with customers in the language they understand,' Surya wrote. He reiterated his long-standing call for banks and public institutions to deploy staff fluent in Kannada for roles involving local interaction. Responding to the uproar, Karnataka Chief Minister Siddaramaiah also condemned the manager's conduct, urging the Union Finance Ministry to introduce cultural and language sensitivity training for banking staff across the country. In the wake of the backlash, the manager was transferred, and both the bank and the individual have since issued formal apologies. In a statement issued in Kannada, the manager reportedly promised to be more mindful and respectful in future interactions with customers.
NDTV
23-05-2025
- Business
- NDTV
After SBI Kannada Row, Bengaluru Founder Plans To Relocate Office To Pune
A Bengaluru-based tech founder has decided to move his company's office to Pune within six months. The reason: the ongoing "language nonsense." "If this language nonsense is to continue, I do not want my non-Kannada speaking staff to be the next 'victim'," entrepreneur Kaushik Mukherjee wrote on X. He said the decision stemmed from concerns raised by his employees, adding he "agreed to their [point of view]." Today I took a decision to wind up our Bangalore office in the next 6 months and move it to Pune. If this language nonsense is to continue, I do not want my non Kannada speaking staff to be the next "victim". This idea was mooted by the staff themselves. I agreed to their POV. — Kaushik Mukherjee ???????? (@kush07) May 22, 2025 This came after a recent incident at an SBI branch in Bengaluru's Chandapura area, where a manager refused to speak in Kannada with a customer, saying, "This is India, I'll speak Hindi, not Kannada." The video of the interaction went viral, drawing sharp criticism from Kannada activists and political leaders alike. Kaushik Mukherjee's post was in response to Bengaluru South MP Tejasvi Surya, who earlier shared the video and called the manager's conduct "not acceptable." "If you are doing customer interface work in Karnataka, especially in a sector like banking, it is important to communicate to customers in the language they know," Mr Surya wrote. He spoke of his long-standing demand that banks and other public-facing institutions in Karnataka ensure that local-language-speaking staff are posted. Karnataka Chief Minister Siddaramaiah also weighed in on the SBI incident, calling the manager's behaviour "strongly condemnable" and urging the Union Finance Ministry to implement cultural and language sensitivity training for banking staff nationwide. The manager has since been transferred, and both the bank and the manager have issued apologies. The manager, in a statement in Kannada, promised to be more sensitive in future dealings with customers. According to the Kannada Development Authority (KDA), there has been a growing trend of non-Kannadigas being posted in public-facing roles in banks. This, the KDA says, is creating a disconnect with local citizens who expect services in their mother tongue. As per Reserve Bank of India norms, all banks are mandated to provide services in English, Hindi, and the regional language.
