RBI Finds Irregular Practices in Gold Loans, Asks Lenders to Review Policies, Monitor Portfolio

The Reserve Bank of India (RBI) has identified irregular practices in the gold loan sector and has urged lenders to review their policies. The RBI's scrutiny aims to ensure that lending practices are transparent and comply with regulatory standards, particularly concerning the valuation of gold and the assessment of borrowers' creditworthiness. The central bank has emphasized the need for lenders to maintain rigorous monitoring of their gold loan portfolios to prevent potential defaults and protect consumer interests. This move aligns with RBI's broader goal of maintaining financial stability and integrity in the banking sector, particularly as the demand for gold loans rises amid economic uncertainties.