RBI’s move to boost gold loans will help stressed SMEs and individuals. But risk management is key – The Economic Times

Clipped from: https://economictimes.indiatimes.com/prime/economy-and-policy/rbis-move-to-boost-gold-loans-will-help-stressed-smes-and-individuals-but-risk-management-is-key/primearticleshow/77861445.cms

Banking

Getty ImagesLabourers pull agoods laden hand-cart past a branch of India’s second largest gold loan firm, Manappuram Finance, in Mumbai.

SynopsisThe hike in loan-to-value ratio on non-agriculture gold loans by banks will have far-reaching consequences. Not only will it inject cash into the economy, helping embattled small businesses and individuals alike, but it may also shake up the financial system, with banks muscling into the territory of NBFCs.

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