Page 23 - Bullion World Volume 03 Issue 07 July 2022

NBFCs to Play

Crucial Role in the

Growth of India’s

Gold Loan Industry

Mr Shaji Varghese
CEO, Muthoot FinCorp

Mr Shaji Varghese

India’s gold loan industry has witnessed significant growth
momentum in the recent years driven by various factors. The role
of the regulator has been paramount in the development of the
industry while ensuring stability, fair play and transparency in
the sector. The guidelines introduced by the Central Bank lately
are strong indicators of the sturdiness and the significance the
industry is set to play as Indian economy is poised to grow.

NBFCs play a significant role in enhancing India’s gold loan
market. Their unparalleled reach cutting the geographical
boundaries has enabled financial inclusion to a greater extent in
the country. The NBFC sector is well regulated and governed by
the Central Bank ensuring transparency, fair play and consumer
protection which has only contributed to the strengthening of the
organised players in the sector. Adhering to governance and risk
management guidelines, maintaining minimum capital adequacy
ratios, license regulation, customer disclosures are few significant
practices followed by the NBFCs maintaining trust and stability
while promoting a healthy financial environment for customers
and investors.

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