Gold is Boosted by India’s Easing of Lending Rules

India’s central bank has increased the amount that finance companies can lend in return for gold deposits.

Under the new rules, non-banking finance companies (NBFCs) can lend up to 75% of the value of gold, from 60%.

The central bank revised the rules because their gold loan portfolios were showing only moderate growth.

Lending against gold is a fast-growing business in the Indian economy, and the industry is valued at more than $20bn (£12bn).

India is placed 11th in the global ranking for gold holdings by central banks, with 8.4% of its reserves held in gold, according to the World Gold Council.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza