RBI directs NBFCs for gold loans: Gold loan borrowers will no longer be able to access large amounts of cash. RBI has directed non-banking finance comp.es (NBFCs) to provide gold loan holders Rs. Do not allocate more than Rs 20 thousand in cash.
According to the Income Tax Act, exchange of gold for Rs. You can get cash only up to Rs 20 thousand. Earlier this week, the RBI had also directed small finance comp.es to comply with Section 269 (SS) of the Income Tax Act. Under which no person will be able to take loan or deposit taken by any other person. Yes, he can get paid based on the specific medium. In which Rs. Cash limit is up to Rs 20 thousand.
consultant
The advisory has been issued by RBI after it found some significant supervisory lapses in the gold loan portfolio of IIFL Finance and imposed restrictions on allotment and sanction of gold loans.
Accelerating cashless transactions
VP Nandakumar, MD and CEO of Manappuram Finance, said that under gold loan Rs. The cash distribution limit of Rs 20,000 has been revised. Online gold loans constitute 50 percent of our gold loan book. Which is completely paperless and cashless.
Indel Money CEO Umesh Mohan said this RBI directive will accelerate the seamless transition to bank transfers while improving compliance in the NBFC sector. Promote Digital India and increase transparency. However, borrowers may face problems when there is an urgent need for money. During the emergency, they will not be able to get cash as quickly as before.
