RBI planning to regulate gold loans

Mumbai: The Reserve Bank of India (RBI) is likely to step in and keep a check on gold loans disbursed by the banks. Sources say the RBI is planning to regulate interest rates on gold loans, penalties and may impose higher margins on loan to value.

Worried about scorching pace of growth of gold loans, the RBI is likely to introduce quality checks when gold is returned to the customer by the banks

The RBI will also ensure rules for customer protection.