New Delhi, April 11 -- Shares of Muthoot Finance, a non-banking financial company (NBFC) specialising in gold loans, fell for the second consecutive day on Friday, April 11, dropping 8.13% to a three-month low of Rs.1,965 apiece.

The sharp decline came after the Reserve Bank of India (RBI) issued a new draft guideline for gold loans on April 9, aimed at standardising procedures across all lenders dealing in gold-backed financing.

The RBI's draft norms mandate uniform documentation to protect borrowers and ensure consistency in the assessment of gold collateral. Lenders will now be required to follow a "standardized procedure" for evaluating the purity and weight-both gross and net-of the gold pledged.

These procedures must be implement...