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RBI issued instructions regarding gold loan, now NBFC cannot give more than this amount in exchange for gold loan
Along with the government, steps are also being taken by the Reserve Bank of India (RBI) to control inflation in the country. To avoid excessive cash flow, RBI has instructed non-banking financial companies (NBFCs) not to give more than Rs 20,000 in cash in exchange for gold. Earlier this week, RBI banned the distribution and approval of gold loans.
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“RBI issued instructions regarding gold loan, now NBFC cannot give more than this amount in exchange for gold loan”
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10 May 2024
The Reserve Bank of India (RBI) has directed non-banking financial companies (NBFCs) to operate only as per income tax rules. According to Income Tax law, only cash up to Rs 20,000 can be given in exchange for gold.
Earlier this week, RBI had also advised small finance companies to follow Section 269SS of the Income Tax Act.
According to section 269SS, any person can make payment through specified methods. If no other person can take the deposit or loan amount.
Only Rs 20,000 will be provided as cash going forward, per RBI directive. This decision was made by the bank after the Central Bank discovered certain issues while inspecting IIFL Finance.
