RBI eases gold lending rules for non-bank finance companies

MUMBAI (Reuters) - The Reserve bank of India (RBI) on Wednesday relaxed gold lending rules for non-bank finance companies.

The RBI said it has decided to allow non-bank finance companies to lend up to 75 percent of the value of gold jewellery deposited with them as collateral with immediate effect, up from 60 percent.

Lending against gold is a fast-growing business in Asia's third-largest economy and companies such as Muthoot Finance Ltd and Manappuram Finance Ltd are among the leading players in this segment. (Reporting by Sumeet Chatterjee; Editing by John Stonestreet)