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Manappuram, Muthoot Finance shares down up to 4.5%

Press Trust of India  |  New Delhi 

of gold financing companies Manappuram and Muthoot today fell by up to 4.5 per cent after the Reserve said NBFCs cannot lend more than Rs 20,000 in against gold.

The scrip of Manappuram dipped 4.54 per cent to close at Rs 90.50 on During the day, it tanked 5.69 per cent to Rs 89.40.

of Muthoot Finance also fell by 3.85 per cent to end at Rs 337.95. Intra-day, it plunged 7 per cent to Rs 326.65.

The earlier provision for NBFCs was that high-value loans against gold of Rs 1 lakh and above must only be disbursed by cheque.

The RBI reduced the amount to Rs 20,000 from the earlier Rs 1 lakh in line with the provisions of the Act.

"...The relevant threshold under the Act, 1961 is Rs 20,000," the central said yesterday, while amending the provisions for disbursal of loan amount in by NBFCs.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, March 10 2017. 17:48 IST