 "RBI, Reserve Bank of India")
The Reserve Bank of India’s (RBI’s) stern warning about potential supervisory action against lenders violating gold loan norms is likely to impact non-banking financial companies (NBFCs) focusing on the segment, particularly those with lesser vintage.
Additionally, the regulator's diktat, directed more towards new fintechs, could lead to a slowdown in lending. This is because the market would seek to normalise growth in the segment, which is currently growing at a very fast pace, experts said.
RBI had on Monday directed banks and NBFCs offering gold loans to thoroughly review policies, processes, and practices to identify any gaps.
