RBI Introduces Stringent New Guidelines For Gold Loans To Ensure Consumer Protection And Financial Stability | Paisa Live

The Banking Regulator, RBI, has issued new directives concerning gold loans. It has given banks and finance companies (NBFCs) a three-month ultimatum to improve their gold loan policies. The regulator has called on all financial institutions to disclose irregular practices, including concealing bad loans, and urged them to identify any gaps in their loan policies and rectify deficiencies. This initiative aims to enhance transparency and accountability within the gold loan sector, ensuring that consumers are better protected. By addressing these issues, the RBI seeks to foster a more stable and trustworthy financial environment for both borrowers and lenders. The forthcoming changes are expected to significantly impact how gold loans are managed in the future.