Muthoot Finance’s share price has risen sharply to over 7% to an intra-day high of Rs 2,222 after the Department of Financial Services urged the Reserve Bank of India not to “adversely affect” small gold loan borrowers through its new draft directions on lending against gold collateral. Other gold loan stocks like Mannapuram Finance also rallied 4%.
Finance Ministry urges RBI to protect interests of small gold loan borrowers
In a post on social media platform X (formerly Twitter), the Ministry of Finance said, “Draft Directions on Lending Against Gold Collateral issued by the RBI (Reserve Bank of India) have been examined by the Department of Financial Services, India under guidance of Union Minister for Finance and Corporate Affairs Nirmala Sitharaman. DFS_India has given suggestions to the @RBI to ensure that the requirements of the small gold loan borrowers are not adversely affected.”
Finance Ministry says new norms not before 2026
The government has also stated that such guidelines need to be implemented from January 01, 2026. The implementation should be at the field level.
Further, the government has suggested that small gold loan borrowers below Rs 2 lakh may be excluded from the requirements of these proposed directions to ensure timely and speedy disbursement of loans for such small ticket borrowers.
“@RBI is reviewing the feedback received on the Draft guidelines. It is expected that concerns raised by various stakeholders, as well as the feedback received from the public, will be duly considered by the @RBI before finalising the Directions on the same,” read the post.
Other than Muthoot Finance, the share price of Manappuram Finance surged 4% to a high of Rs 240.45 on the National Stock Exchange.
Muthoot Finance share performance
Muthoot Finance’s share performance has risen 5.6% in the last five trading sessions. The stock holds gains of 2.3% in the previous one month. The gold loan stock has increased by 15% in the past six months and 33% in the last one year.
Manappuram Finance share performance
The stock price of Manappuram Finance has risen 4% in the last five trading sessions. It has increased by 4.3% in the previous one month and 54% in the last six months. The stock has raised investors’ wealth by 43% in the last one year.
