Gold Lending Industry Eyes Self-Regulation, Priority Tag

With ₹3 trillion in assets, gold lenders push for SRO tag and priority treatment in RBI norms

- Anshika Kayastha

Old lending industry lobby plans to seek self-regulatory organization (SRO) status from the Reserve Bank of India (RBI), citing its growing size and unique rules applicable to the business.

The Association of Gold Loan Companies (AGLOC), India plans to start the process with 10 founding members, which are required under RBI regulations, and then add more members as it grows, said president George Alexander Muthoot, who is also the managing director of the country's largest gold lender Muthoot Finance Ltd. "We will talk to RBI and start discussions."

Kochi-based AGLOC (India) is a non-profit organization whose objectives, according to its website, include promoting and safeguarding the interests of gold loan financing companies and providing a common forum.