Kerala-based NBFCs appreciate getting the benefit of the SARFAESI Act in the Budget, saying that “it has been a long-pending request of the industry”.
V.P. Nandakumar, Managing Director and CEO of Manappuram Finance, said the announcement on considering NBFCs as large financial institutions and treating them under the SARFAESI Act is a major step forward in terms of extending a level playing-field to NBFCs. It will help avoid litigation in recovery and repossession of assets.
Hailing the initiatives of gold bonds and gold monetising schemes, he said “it is the best way to reduce the import of gold and to unlock the value of our large stockpile of gold”.
According to K.R. Bijimon, Chief General Manager, Muthoot Finance, the SARFAESI Act is a right step for organised players in the gold loan industry, as it will eliminate unscrupulous elements from industry.
On gold monetising schemes, he said the initiatives to cash in on gold is definitely a move to bring back unutilised gold into the system and to ease the balance of payments situation. There is no need to further import gold as the country has enough stock of nearly 20,000 tonnes.