NEW DELHI: Shares of gold loan companies dropped up to 4 per cent in Friday’s trade after the RBI said NBFCs cannot lend more than Rs 20,000 in cash against gold. Instead, they have to issue cheque on a loan amount above that.

Earlier, NBFCs were allowed to disburse high value loans of Rs 1 lakh and above against gold only through cheque.

RBI reduced the amount to…