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The Print
2 hours ago
- Business
- The Print
RBI's new gold loan guidelines could push borrowers back to moneylenders
Gold loans have traditionally been an important financial lifeline for families, particularly in times of adversity. From financing healthcare and education to meeting farming expenditures or fulfilling short-term liquidity gaps, pledging gold is usually quicker, more convenient, and accessible than taking unsecured loans or going through elaborate banking formalities. Their pull comes from less documentation, faster disbursals, and lower interest rates than unsecured credit. Indian families collectively own approximately 25,000 tonnes of gold , which makes India the largest private holder of gold in the world. For perspective, this is almost six times larger than the gold inventory held at Fort Knox in the US, one of the world's most heavily fortified gold reserves. This massive private accumulation is not simply wealth—it is emotion, tradition, and socio-economic resilience. In India, gold is not merely a commodity or a financial asset—it is an intrinsic part of the nation's cultural fabric. For centuries, families across socio-economic backgrounds have relied on gold not just for adornment or investment, but as a form of generational wealth and financial security. This deeply embedded relationship makes gold loans one of the most accessible, viable, and reliable forms of credit in India. But this much-needed safeguard is now under threat from the Reserve Bank of India's (RBI) new guidelines made public in mid-2025. Though intended to curb fraud and impose due diligence, the new norms direct lenders to refrain from extending gold loans where the ownership of collateral is doubtful and mandate formal evidence of gold ownership or a documented verification of such ownership which is a difficult requirement to fulfill in a nation where so much gold passes from one generation to the next or is transferred as gifts without paperwork. The guidelines also have more stringent loan-to-value ratios—maximising loans to 85 per cent of gold value for loans up to Rs 2.5 lakh, 80 per cent for Rs 2.5–5 lakh, and 75 per cent beyond that, covering interest and charges within these ceilings, essentially cutting the effective disbursed loan. Additionally, borrowers are now required to completely repay ongoing gold loans before taking new loans, closing the earlier system of perpetuating loans by remitting interest alone. Lenders also have to evaluate borrowers' earnings and capacity to repay, thus disadvantaging informal workers with no formal evidence of income. Other requirements constrain types of collateral, such as limiting jewellery pledges to 1 kg and gold coins to 50 grams, as well as precluding gold Exchange Traded Funds (ETFs) and mutual funds as collateral. The issue is serious enough to warrant a parliamentary intervention, which I raised during my Zero Hour speech in the Budget Session on 27 March. Also read: Ambitious PMFBY is failing. It has the same flaws of earlier schemes Call for compassionate reform The new requirements fail to account for how gold ownership works in Indian society. It's often undocumented, inherited, and deeply personal. The following real-life stories reveal their unintended consequences: In Kadapa district of Andhra Pradesh, K. Nagalakshmi, a marginal farmer's wife, pawned her gold bangles gifted to her at her wedding 18 years ago to raise Rs 2 lakh for her husband's emergency surgery after a tractor accident. The gold had no receipts; it was part of her dowry, passed from her mother. 'I don't have any paper to prove it's mine,' she told The Hindu. 'These bangles saved my husband's life. If the bank asks for proof next time, what will I do?' During the COVID-19 lockdown, Raju Singh, a pushcart vegetable vendor in Bihar's Muzaffarpur, pledged his wife's earrings to get a Rs 40,000 gold loan from a local lender. With no steady income proof or gold purchase bill, he used the money to buy fresh stock and restart his business. In many Indian households, gold is not purchased with formal receipts. It is gifted at weddings, handed down through generations, or acquired long ago, often before digitisation or widespread receipt culture. The assumption that all borrowers can produce formal documentation is detached from the ground reality and culturally tone-deaf. The rules may inadvertently displace legitimate borrowers, especially women, rural households, informal workers, and the elderly. In seeking to curb fraud, we risk pushing people away from formal credit systems and back into the arms of exploitative moneylenders. While regulatory oversight is essential, it must be coupled with cultural awareness and practical flexibility. Gold loans are more than just financial instruments—they are the bridge between India's cultural legacy and modern financial needs. RBI must look beyond spreadsheets and balance sheets to understand how Indians live with gold—as tradition, as trust, and as a fallback in times of need. Regulation must serve both the integrity of the financial system and the dignity of its users. Only then can we preserve the value of gold as a source of security, not just in monetary terms but in the cultural heart of Indian life. Karti P Chidambaram is a Member of Parliament for Sivaganga, and a Member of the All India Congress Committee. His X handle is @KartiPC. Views are personal. (Edited by Ratan Priya)
The Citizen
2 days ago
- Business
- The Citizen
Tips on how to build your savings and become financially resilient
With many adverse economic forecasts, it is a good idea for consumers to work on their financial future and build resilience now. As the economy struggles due to domestic and international geopolitics, many South Africans need advice to improve their financial future. More than 80% of middle-income South Africans have little or no emergency savings, with 27% having no accessible savings at all and over half holding less than a week's take-home pay in reserve. At the same time, rising living costs, high inflation and stubborn unemployment are squeezing household budgets, Zihaad Israfil, CEO of DFI Financial South Africa, says. 'However, small changes, from tracking spending to using free learning tools, can help every South African improve their financial future. 'In an economic climate where rising costs affect millions, financial empowerment is no longer a nice-to-have, but essential. Too often, people believe that investing or even saving intelligently is only for the wealthy or financially educated. But financial success is built through education, consistency and the courage to take the first step.' ALSO READ: Savings month: How to save like a millionaire – even if you are not one yet He says anyone can improve their situation by shifting focus from fear to small, steady progress. In practical terms, he advises South Africans to start by mastering the basics: setting up a budget and knowing where every rand goes each month. 'Using a simple app or spreadsheet to track expenses can reveal unnecessary costs that can be trimmed. Cutting even small expenses can create breathing room to begin saving. With a budget in place, the next targets should be debt and savings. 'High-interest debt quietly eats away at financial progress,' he cautions. Paying more than the minimum on loans or credit cards can drastically reduce interest over time, freeing up cash flow. Every household should have separate emergency fund At the same time, Israfil says, every household should build an emergency fund. Even a modest cushion can prevent a small crisis from becoming a financial disaster. 'Consistency is key. R500 invested every month may not seem like much, but it adds up over time with compound growth.' He recommends automating transfers to savings or investment accounts by having a fixed amount move into savings as soon as your pay hits the bank, as this removes the temptation to spend first and helps savings grow by paying yourself first each month. ALSO READ: Savings month: Here's how to build your financial future brick by brick With those financial foundations secure, South Africans can begin to think about growth. Israfil stresses that investing is not gambling or a quick-rich scheme. Today's technology makes it easier than ever to start small. There are entry points for virtually every income level, from tax-free savings accounts to low-cost ETFs (Exchange Traded Funds) and retirement annuities. He says the goal is not to chase market timing but to be consistent: even tiny amounts invested regularly can compound into a substantial nest egg over the years. And importantly, everyone can learn – no advanced degree is needed. 'The more you understand, the more confident you become.' Practical tips for resilience and a good financial future To make progress, Israfil recommends these practical steps:
Associated Press
03-07-2025
- Business
- Associated Press
Horizon Continues to Build Its Lineup of Exchange Traded Funds with the Launch of Two New Active Fixed Income ETFs
CHARLOTTE, N.C.--(BUSINESS WIRE)--Jul 3, 2025-- Horizon, a provider of highly customized investment and technology solutions designed to fuel the growth of financial advisors, is today introducing the two newest members of its fast-growing family of Exchange Traded Funds (ETFs). Both ETFs are actively managed, focusing on targeted fixed income exposures that use options overlays, with the goal of providing more consistent investment outcomes. Now available are: Today's launches come shortly after the firm introduced three other ETFs last week, bringing its total number of ETFs to seven. 'My colleagues and I are thrilled to be announcing today's launches as we continue to build out our ETF solutions,' said John Drahzal, President & CEO of Horizon. 'The financial advisors we work with have asked for active strategies that support their clients' income needs amidst complex interest rate and credit environments. BNDY and FLXN reflect our commitment to supporting those advisors by offering income strategies that go beyond traditional bonds and aim to deliver more consistent outcomes.' 'Advisors have the choice to be passive or to be precise as they look at their clients' core bond exposures,' said Horizon's Head of ETFs Clark Allen, CFA ®, CPA, CAIA ®. 'With BNDY and FLXN, we believe we're providing innovative tools that help advisors meet today's challenges. We're very excited to be adding these new funds to our roster and for the future plans we have to expand our ETF offerings.' For more information on Horizon's ETF lineup,please click here. About Horizon Horizon is an industry-recognized firm that provides modern goals-based solutions to empower financial advisors to help their clients reach their financial goals. More than an investment firm, Horizon helps fuel the growth of advisory practices by offering deep expertise, proprietary technology, and customized support. Sitting at the intersection of financial technology, wealth management, and investment solutions, Horizon's unique approach enables advisors to transform their practices and focus on what matters most: building meaningful relationships and guiding clients toward their financial goals. Horizon has advisor clients across the country and is headquartered in Charlotte, North Carolina. For more information, please visit Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus with this and other information about the fund, pleaseclick here. or call 866-371-2399. Please read the prospectus carefully before investing. Investing involves risk, including potential loss of principal. There is no assurance that the fund will meet its objective. Investments in securities in general are subject to market risks that may cause their prices to fluctuate over time, and the Fund's investments may decline in value due to factors affecting securities markets generally or to individual fund holdings. The value of investments in fixed income securities and securities in which the underlying investments are fixed income securities are expected to fluctuate with changes in interest rates. Investments in options involve risks different from, or possibly greater than, the risks associated with investing directly in securities, including leverage risk, tracking risk and, in the case of over the counter options, counterparty default risk. Option positions may expire worthless exposing the Fund to potentially significant losses. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Horizon ETFs are distributed by Quasar Distributors, LLC. View source version on CONTACT: Chris Sullivan Craft & Capital [email protected] KEYWORD: UNITED STATES NORTH AMERICA NORTH CAROLINA INDUSTRY KEYWORD: FINANCE CONSULTING BANKING PROFESSIONAL SERVICES ASSET MANAGEMENT SOURCE: Horizon Copyright Business Wire 2025. PUB: 07/03/2025 08:45 AM/DISC: 07/03/2025 08:45 AM
Business Wire
03-07-2025
- Business
- Business Wire
Horizon Continues to Build Its Lineup of Exchange Traded Funds with the Launch of Two New Active Fixed Income ETFs
CHARLOTTE, N.C.--(BUSINESS WIRE)-- Horizon, a provider of highly customized investment and technology solutions designed to fuel the growth of financial advisors, is today introducing the two newest members of its fast-growing family of Exchange Traded Funds (ETFs). Both ETFs are actively managed, focusing on targeted fixed income exposures that use options overlays, with the goal of providing more consistent investment outcomes. "BNDY and FLXN reflect our commitment to supporting... advisors by offering income strategies that go beyond traditional bonds and aim to deliver more consistent outcomes...' - John Drahzal, President & CEO of Horizon. Share Now available are: Horizon Core Bond ETF (BNDY): Aiming to provide current income consistent with low principal volatility, BNDY invests primarily in investment-grade fixed-income securities with varying maturities, including government and corporate bonds. The Fund also employs put spread overlays to enhance return potential and introduce a layer of risk-managed exposure to market volatility. Horizon Flexible Income ETF (FLXN): This fund is designed to seek current income. FLXN primarily focuses on opportunities in high-yield fixed-income securities while maintaining flexibility to tactically allocate based on evolving market conditions. It also employs put spread overlays to enhance return potential and manage downside risk. Today's launches come shortly after the firm introduced three other ETFs last week, bringing its total number of ETFs to seven. 'My colleagues and I are thrilled to be announcing today's launches as we continue to build out our ETF solutions,' said John Drahzal, President & CEO of Horizon. 'The financial advisors we work with have asked for active strategies that support their clients' income needs amidst complex interest rate and credit environments. BNDY and FLXN reflect our commitment to supporting those advisors by offering income strategies that go beyond traditional bonds and aim to deliver more consistent outcomes.' 'Advisors have the choice to be passive or to be precise as they look at their clients' core bond exposures,' said Horizon's Head of ETFs Clark Allen, CFA ®, CPA, CAIA ®. 'With BNDY and FLXN, we believe we're providing innovative tools that help advisors meet today's challenges. We're very excited to be adding these new funds to our roster and for the future plans we have to expand our ETF offerings.' For more information on Horizon's ETF lineup, please click here. About Horizon Horizon is an industry-recognized firm that provides modern goals-based solutions to empower financial advisors to help their clients reach their financial goals. More than an investment firm, Horizon helps fuel the growth of advisory practices by offering deep expertise, proprietary technology, and customized support. Sitting at the intersection of financial technology, wealth management, and investment solutions, Horizon's unique approach enables advisors to transform their practices and focus on what matters most: building meaningful relationships and guiding clients toward their financial goals. Horizon has advisor clients across the country and is headquartered in Charlotte, North Carolina. For more information, please visit Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus with this and other information about the fund, please click here. or call 866-371-2399. Please read the prospectus carefully before investing. Investing involves risk, including potential loss of principal. There is no assurance that the fund will meet its objective. Investments in securities in general are subject to market risks that may cause their prices to fluctuate over time, and the Fund's investments may decline in value due to factors affecting securities markets generally or to individual fund holdings. The value of investments in fixed income securities and securities in which the underlying investments are fixed income securities are expected to fluctuate with changes in interest rates. Investments in options involve risks different from, or possibly greater than, the risks associated with investing directly in securities, including leverage risk, tracking risk and, in the case of over the counter options, counterparty default risk. Option positions may expire worthless exposing the Fund to potentially significant losses. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Horizon ETFs are distributed by Quasar Distributors, LLC.
New Straits Times
01-07-2025
- Business
- New Straits Times
Bursa Malaysia attracts foreign listings, strengthens market participation
KUALA LUMPUR: Bursa Malaysia continues to draw foreign-listed companies for secondary listings while boosting market liquidity and vibrancy through a strategy aimed at strengthening trading participation among both retail and institutional investors, locally and abroad. "We are dedicated to building a more inclusive and sustainable trading ecosystem to support the growth of Malaysia's capital market," its chief executive officer Datuk Fad'l Mohamed said. Bursa Malaysia emerged as the leading initial public offering (IPO) market in Asean for 2024, topping the region with 55 listings and raising the highest total IPO proceeds. Fad'l expects this strong performance to continue, noting that the exchange retained its lead in the number of IPOs, total funds raised, and overall market capitalisation for IPOs in the first half of the year. "Despite market volatility, Malaysia has shown encouraging IPO activity, reaffirming our position as a key fundraising avenue in Asean," he said. Fad'l also underscored the maturity of Malaysia's capital market ecosystem, where companies frequently transition between tiers, from the LEAP Market to the ACE Market or from the ACE Market to the Main Market. Since 2020, more than 40 companies have "graduated" to higher-tier markets, reflecting their growth and development. Bursa Malaysia is actively enhancing its regional collaborations to stimulate cross-border market participation, with the exchange recently signing a Memorandum of Understanding (MoU) to facilitate the cross-listing of foreign-underlying Exchange Traded Funds (ETFs) on its platform. Furthering its commitment to sustainability, Bursa Malaysia is progressing toward listing the FTSE4GOOD Bursa Malaysia ETF, its first ESG-aligned ETF, which will provide institutional and retail investors with an entry point into companies excelling in sustainability practices, aligning with global environmental, social, and governance (ESG) standards. "Our efforts in ETFs and ESG initiatives are designed to make Malaysia's capital market more vibrant and competitive while addressing the growing demand for sustainable investment options," he said. Through initiatives such as the Asean-Interconnected Sustainability Ecosystem and the Asean Common Carbon Framework, Bursa Malaysia is playing a critical role in the region's sustainability agenda. These frameworks aim to create cohesive ESG standards and facilitate carbon market development across Asean, enabling member countries to align their sustainability goals.
