Muthoot Finance shares gain 3% as RBI reviews gold loan guidelines with small borrowers in focus

Shares of Muthoot Finance rose by 3% after recent developments signalled a positive outlook for Non-Banking Financial Companies (NBFCs) involved in gold lending. The Reserve Bank of India (RBI) is currently reviewing feedback on its Draft Directions on Lending Against Gold Collateral, which had sparked concerns over potential impacts on small-ticket borrowers.

The Department of Financial Services (DFS), under the Ministry of Finance, has stepped in with key recommendations. Under the guidance of Finance Minister Nirmala Sitharaman, the DFS advised the RBI to ensure that the interests of small gold loan borrowers are not adversely affected by the new norms. It has also suggested a phased implementation, recommending the guidelines come into effect from January 1, 2026.

In a relief to NBFCs and borrowers alike, the DFS further proposed excluding loans below ₹2 lakh from the purview of these new directions. This move is aimed at ensuring faster and hassle-free disbursals for small borrowers who rely heavily on gold loans for urgent financial needs.

The RBI is now in the process of reviewing inputs from stakeholders and the public, signaling a collaborative approach to policy-making. Investors cheered the development, viewing it as a step that could prevent disruption in gold loan disbursals and support continued growth for lenders like Muthoot Finance.

Muthoot Finance shares opened at ₹2,073 today, and, at the time of writing, reached a high of ₹2,145.90 and a low of ₹2,068.00 during the session. The stock remains strong, trading closer to its 52-week high of ₹2,435.40, while well above its 52-week low of ₹1,579.10.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.

[ad_1]

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}

[ad_2]