India's Finance Ministry directs public sector banks to review gold loan portfolios for regulatory non-compliance.

India's Finance Ministry has directed public sector banks to review their gold loan portfolios due to non-compliance with regulatory norms. The Department of Financial Services (DFS) has asked banks to assess their systems and processes related to gold loans, addressing concerns such as disbursement of loans without adequate gold collateral, collection of fees, and repayment. This comes amid a surge in gold loan disbursements and increasing gold prices.

March 13, 2024
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