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The recommendations made by the Department of Financial Services, under the Union Finance Ministry, on the Reserve Bank of India’s draft gold loan norms mark a progressive step towards balancing regulatory oversight with financial inclusion, Alexander Muthoot, Managing Director, Muthoot Finance, said.
The phased implementation timeline and exemption for gold loans below ₹2 lakh reflect a deep understanding of the socio-economic realities of India’s underserved and rural borrowers — who largely depend on gold-backed credit for livelihood, education, and emergencies, he said in a statement.
Shares of gold loan non-banking finance companies rose on Friday (May 30, 2025), after the Finance Ministry recommendations.
Muthoot Finance shares rose over 6% to ₹2,200, while Manappuram Finance shares rose nearly 3% to ₹238 on the Bombay Stock Exchange (BSE).
Published – May 30, 2025 07:17 pm IST
Source: https://www.thehindu.com/business/finance-ministry-recommendations-on-gold-loan-norms-progressive-step-muthoot-finance-md/article69637696.ece
