Shares of gold financing companies Manappuram Finance and Muthoot Finance today fell by up to 4.5 per cent after the Reserve Bank said NBFCs cannot lend more than Rs 20,000 in cash against gold.
The scrip of Manappuram Finance dipped 4.54 per cent to close at Rs 90.50 on BSE. During the day, it tanked 5.69 per cent to Rs 89.40.
Shares of Muthoot Finance also fell by 3.85 per cent to end at Rs 337.95. Intra-day, it plunged 7 per cent to Rs 326.65.
The earlier provision for NBFCs was that high-value loans against gold of Rs 1 lakh and above must only be disbursed by cheque.
The RBI reduced the amount to Rs 20,000 from the earlier Rs 1 lakh in line with the provisions of the Income Tax Act.
"...The relevant threshold under the Income Tax Act, 1961 is Rs 20,000," the central bank said yesterday, while amending the provisions for disbursal of loan amount in cash by NBFCs.
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