RBI ‘very comfortable’ with gold loan exposure despite sharp volatility in prices, says Guv Sanjay Malhotra

The Reserve Bank of India (RBI) has expressed comfort regarding outstanding gold loans in the financial system, despite recent price volatilities. Governor Sanjay Malhotra stated that loan-to-value ratios are well below prescribed norms, mitigating concerns about potential borrower defaults. Reviews of MSME and personal loans also indicated good asset quality.