George Alexander Muthoot, MD, Muthoot Finance views on RBI monetary policy

Mr George Alexander Muthoot - Managing Director, Muthoot Finance Ltd

"The 25 basis point cut in the Repo rate, the third this calendar year was much on expected lines and is indeed welcome. What is also good to see is RBI contemplating to address KUB Rao Committee recommendations with regards to gold imports and gold loans. The RBI's stance to allow banks from lending against gold coins weighing up to 50 Gms per customer is a positive step though it would have brought some level playing field if it was extended to Gold Loan NBFCs too as we only lend against household gold jewellery and not gold coins. As regards recommendations on loan to value, branch expansion and review of fair practices code, we are confident RBI would take the right steps for shaping up the gold loan sector for long term when it comes out with its guidelines this month end."

Source : Equity Bulls

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