Gold loan company Muthoot Finance, by virtue of its classification as an ‘upper layer’ non-banking financial company (NBFC), expects more operational flexibility under RBI’s revised scale-based regulatory framework.
Of the 16 entities classified as upper layer NBFCs, elevating them on par with public sector NBFCs, Muthoot Finance alone is Kerala-based.
Responding to the development, George M George, Deputy Managing Director, Muthoot Finance Ltd, said, “The inclusion in the upper layer list by the RBI is expected to be a huge value recognition for the company and our stakeholders. We consider that this acknowledgement will enable us to positively contribute to the economic growth of the nation. We are expecting the classification to bring operational flexibility We are further optimistic to leverage the massive opportunity in the gold loan industry.”
Digitisation drive
As part of its digital initiatives, the company has so far clocked over 95 lakh digital transactions, valued at ₹8,000 crore.
On the digitisation drive, KR Bijimon, Executive Director and COO, Muthoot Finance Ltd, said, “We are happy to observe that there is commendable growth in the number of digital transactions. We have always tried to leverage and adopt best practices in digital technology, keeping the customer interest at the forefront. We have set up a strategic IT division named Emsyne, which engages in developing and deploying new trends in digital technology.
“We have seen the pandemic forcing us to make rapid strides in technology, and we had anticipated the disruption that digitisation would bring in our consumer preferences, and also the banking sector in particular. As such, the company has managed to transfer 40 per cent of its gold loan transactions online and we will continue to further strengthen our digital strategy.”