Muthoot Finance shares plummeted after the Reserve Bank of India (RBI) announced forthcoming comprehensive regulations for gold-backed loans, triggering a selloff. The new rules include a uniform Loan-to-Value (LTV) cap of 75% and stricter monitoring of gold loans for income generation. Other lenders with gold loan exposure, like Manappuram Finance and IIFL Finance, also experienced declines following the announcement.
Rate cut expected, RBI’s views in focus with economy near a sizzle
Economists anticipate the Reserve Bank of India will reduce interest rates this week. This decision comes amid decreasing inflation. Experts await the central bank’s insights