Question : CSB Bank has recently partnered with IIFL Finance for gold loan origination.Which one of the following statement is correct regarding organised gold loan sector in India ?
(a)It is regulated by RBI
(b)It is regulated by Ministry of Corporate Affairs
(c)Both (a) and (b)
(d)none of the above
Answer (c)
Related facts
- CSB(Catholic Syrian Bank) has recently(October 2020) partnered with IIFL Finance for gold loan origination.
- Here, origination means sourcing and managing retail gold loan assets.
IIFL Finance
- India Infoline(IIFL) is a BC(Business Correspondent) of the Catholic Syrian Bank.
- This will become a source of new business in markets where CSB does not have sufficient branch network.
Organised gold loan market in India
- The organised gold loan markets include banks(public,private,small finance and co- operative),NBFCs(Non-Banking Finance Companies) and Nidhi companies.
- In order to make the regulatory regime more effective for NIDHI companies and to meet transparency and investor friendly objectives in the corporate environment of the country, the Central Government has recently amended the provisions relating to NIDHI under the Companies Act and Rules. (Effective from 15th August 2019)
- Organised gold loan sector in India is regulated by RBI & Ministry of Corporate Affairs.
By – Pankaj Pandey