FIDC seeks parity for gold loan NBFCs with banks on loan-to-value ratio

By limiting applicability to banks, a vulnerable section of the population is punished by exclusion, the Council says

The Finance Industry Development Council (FIDC) in a letter to the Reserve Bank of India (RBI) governor has asked the regulator to reconsider its decision on keeping out the gold loan-focused NBFCs from the purview of an increase in loan to value ratio (LTV) for loans pledged against gold ornaments and jewellery, to be used for non-agricultural process.

The FIDC in its letter has said, "By restricting the applicability of the measure to banks, a vulnerable section of the population is effectively punished by exclusion. Gold loan-focused NBFCs, with their specialised experience in the field, would be well-placed to deal with