In February 2025, Muthoot Finance has received RBI approval to open how many new branches across India, strengthening its presence in the gold loan market?

Question

Question

This question was previously asked in

RRB NTPC Graduate Level CBT-I Official Paper (Held On: 05 Jun, 2025 Shift 1)

Answer 1

The correct answer is 115.

Key Points

In February 2025, Muthoot Finance received approval from the Reserve Bank of India (RBI) to open 115 new branches across the country.
This strategic expansion aims to strengthen Muthoot Finance's presence in the gold loan market, a key segment in India's financial sector.
The approval aligns with Muthoot Finance's vision to broaden its reach, especially in rural and semi-urban areas, to cater to the growing demand for gold loans.
Muthoot Finance is the largest gold financing company in India, with a market share of over 20% in the organized gold loan market.
The new branches will enhance access to financial services, including gold loans, insurance, and money transfer services, among underserved populations.

Additional Information

Gold Loan Market in India:
- India is one of the largest consumers of gold globally, with households holding over 25,000 tons of gold, making gold loans a popular financial product.
- Gold loans are secured loans where borrowers pledge their gold jewelry or ornaments as collateral.
- The organized gold loan market in India is dominated by NBFCs like Muthoot Finance and Manappuram Finance, along with banks.
Muthoot Finance Overview:
- Muthoot Finance Limited is a leading Non-Banking Financial Company (NBFC) in India, founded in 1939.
- It specializes in gold loans, money transfer services, investment products, and insurance services.
- With a vast network of branches, Muthoot Finance primarily caters to rural and semi-urban customers.
RBI's Role in Branch Approvals:
- The Reserve Bank of India regulates NBFCs and approves their expansion plans, ensuring adherence to financial and operational guidelines.
- Branch expansions are approved based on factors such as financial health, compliance history, and market demand.
Impact of Branch Expansion:
- Branch expansions improve financial inclusion by providing easier access to loans and other financial services in underbanked areas.
- They also contribute to employment generation and support regional economic growth.