Finance companies are expected to moderate loan disbursals following the banking regulator's recent restrictions on high-margin but potentially risky business lines such as gold loans and securities financing. The Reserve Bank of India (RBI) recently ordered curbs on IIFL Finance's gold loans and JM Financial Products' financing of bonds and stocks. This regulatory action is likely to make banks more conservative in lending to non-bank financiers, leading to concerns about liquidity for onward lending. The RBI's moves are aimed at curbing unethical practices and systemic risks in the financial sector, although they may temporarily impact credit expansion.