Muthoot Finance share price surged over 8 percent in Friday's trading session after the finance ministry asked the Reserve Bank of India (RBI) to ensure interest of the small gold loan borrowers are not impacted by new draft guidelines.
Shares of Muthoot Finance Ltd. surged as high as 8.6 percent to an intraday high of Rs 2,243 per share on the NSE.
Manappuram Finance shares also surged nearly 4 percent to Rs 240.4 per share on the NSE, up 3.71 percent. IIFL Finance shares also surged over 2 percent to Rs 438.75 per share on the NSE, rising 2.6 percent.
Finance Ministry informed about its suggestions through a social media post that it has examined the draft guidelines by the Reserve Bank of India on gold loans and suggested to ensure that the requirements of small borrowers who avail credit of up to Rs 2 lakh should not be adversely affected.
The DFS also suggested exclusion of small-ticket borrowers from these proposed directions in order to ensure "timely and speedy disbursement of loans" for them.
The Reserve Bank of India had on April 9 issued draft norms for loan against gold as collateral as part of a move towards 'principle-based and harmonised regulatory framework'. The draft norms proposed to enhance underwriting, improve collateral management, as well as to monitor the end-use of funds.
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