AGLOC Welcomes RBI Guidelines, Confirms Full Compliance Among Traditional Gold Loan Companies
Bangalore, October 2, 2024: AGLOC (Association of Gold Loan Companies) acknowledges and fully supports the Reserve Bank of India’s (RBI) recent circular dated September 30, 2024, which emphasizes the need for adherence to prudential guidelines and transparent practices in the gold loan sector. As key players in this sector, traditional gold loan companies are committed to maintaining the highest standards of compliance and integrity in every aspect of their operations.
The circular from the RBI highlights areas where improvements are needed within the sector, particularly regarding third-party practices, the valuation of gold, customer transparency, and the monitoring of loan portfolios. AGLOC is pleased to confirm that all traditional gold loan companies under its umbrella have reviewed these areas and have implemented robust systems to ensure compliance with the updated guidelines.
AGLOC reiterates that traditional gold loan companies have always prioritized customer trust, transparency, and risk management. In light of the RBI’s findings, companies have taken proactive steps to strengthen internal processes and policies, monitor Loan-to-Value (LTV) ratios, improve the due diligence process, and ensure transparency and fairness.
We fully align with the RBI’s goal of fostering a responsible and transparent financial ecosystem. AGLOC and its member companies are committed to ensuring that the highest standards of governance and compliance are maintained in the gold loan sector. The traditional gold loan companies have already commenced a thorough review of their policies and will continue to work closely with the RBI to address any potential gaps.
AGLOC will also provide continuous updates to the RBI’s Senior Supervisory Manager as per the required timeline and welcomes any feedback from stakeholders to further enhance operational practices.
This press note serves as AGLOC’s formal commitment to upholding the trust and confidence of the customers it serves, while ensuring full regulatory compliance as set out in the RBI’s recent circular.
