Muthoot, Manappuram fall up to 3% on RBI restrictions

Shares of gold-loan firms Muthoot Finance and Manappuram Finance fell on Tuesday fell by as much as 3 percent in morning trade after the Reserve Bank of India imposed restrictions on banks and NBFCs for providing loans against gold coins as well as units of gold ETFs and mutual funds.

Also Read: RBI restricts banks lending against gold

Muthoot Finance went down by 2.78 percent to Rs 143, while Manappuram Finance lost 1.47 percent 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 on Monday said in a notification to banks.

Banks have also been asked to ensure that the amount of loan to any customer against gold ornaments, gold jewellery and gold coins (weighing up to 50 gms) should be within the limit approved by the board.

The central bank further said that banks cannot give advances against gold exchange traded funds (ETFs) and units of gold mutual funds.