Taking strong exception to disbursement of gold loans by the financial institutions and banks, the Madhya Pradesh High Court (Indore bench) in a significant move here on Saturday served notices on three financial institutions – vis-a-vas Muthoot Finance, Mannipuram and IFM - asking them to give replies on its gold loan disbursement scheme within four weeks.
The High Court has served on the three financial institutions of the city dealing in gold loan following a public interest litigation. In the PIl the petitioner has contended that since all the banks dealing in gold loans come under the purview of the Reserve Bank of India, it should essentially give loan to the customers as per the guidelines of the RBI.