RBI directs NBFCs, including gold loan firms, to strictly adhere to cash disbursement limits under the Income Tax Act, causing share drops of up to 8%.
Indian gold loan firms Muthoot Finance and Manappuram Finance saw their shares drop by over 8% after the RBI directed NBFCs to strictly follow the Income Tax Act's cash disbursement provision, limiting cash payouts to Rs 20,000. This move aims to discourage cash transactions and particularly impacts gold loan and microfinance NBFCs. While the RBI's directive is not a new rule, its recent strictness is affecting lending firms.
May 09, 2024
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