 "gold loan")
The Union finance ministry has suggested exempting gold loans below ₹2 lakh from the Reserve Bank of India’s (RBI’s) proposed directions on lending against the yellow metal as collateral.
The ministry has said the RBI’s directions have been examined by the Department of Financial Services (DFS), under Union Finance Minister Nirmala Sitharaman’s guidance.
“The DFS has given suggestions to the RBI to ensure that the requirements of small gold loan borrowers are not adversely affected,” the department said in an official statement.
The DFS suggestion will benefit 60-70 per cent of borrowers.
According to industry estimates, the average size of
