The Reserve Bank of India (RBI) is set to introduce key regulatory changes in gold loans to curb fraudulent practices, as gold prices continue to rise.
Previously, gold loans were sanctioned within minutes, leading to an increase in fraudulent transactions. To address this, the RBI is planning stricter verification processes, requiring financial institutions to authenticate the purity and ownership of pledged gold before approving loans.
The central bank has identified inconsistencies in gold loan disbursement across the country. Currently, banks follow varying interest rates, and multiple loans are being issued against a single PAN card. Additionally, loan defaults have become a growing concern. To standardize the process, the RBI is formulating uniform regulations that all financial institutions must adhere to while sanctioning gold loans.
RBI to Tighten Gold Loan Rules!
-Stricter underwriting processes for lenders
-Standard protocols to be enforced
-Ensuring controlled sector growthStay tuned for expert insights!
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