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Shares of gold loan firms Muthoot Finance and Manappuram Finance today fell by as much as 3 per cent in morning trade after the Reserve Bank imposed restrictions on banks and NBFCs for providing loans against gold coins as well as units of gold ETFs and mutual funds.
Muthoot Finance scrip went down by 2.78 per cent to Rs 143, while Manappuram Finance lost 1.47 per cent to Rs 16.75 on the BSE.
“It is advised that while granting advance against the security of specially minted gold coins sold by them, banks should ensure that the weight of the coin does not exceed 50 grams per customer,” RBI had yesterday said in a notification to banks.
Also banks have been asked to ensure that the amount of loan to any customer against gold ornaments, gold jewellery and gold coins (weighing up to 50 grams) should be within the board approved limit.
The central bank further said that banks cannot give advances against gold Exchange Traded Funds (ETFs) and units of gold Mutual Funds.
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