Non-banking finance companies in the gold loans business may find the going tough when it comes to raising loans from banks.
The RBI has directed banks to reduce their regulatory exposure ceiling to a single NBFC, having gold loans to the extent of 50 per cent or more of its total financial assets, from the existing 10 per cent to 7.5 per cent of bank’s capital funds.
“There has been a significant increase in loans against gold by non-banking financial companies in the recent period, which has raised several concerns,” the RBI said in its Annual Monetary Policy for 2012-13.
The central bank also said that banks should have an internal sub-limit on their aggregate exposure to NBFCs having gold loans to the extent of 50 per cent or more of their total financial assets, taken together.
The RBI has constituted a Working Group to undertake a detailed study of gold demand, trends in gold prices and lending by NBFCs against gold.