Repayment of Gold Loan - ಆರ್ಬಿಐ - Reserve Bank of India
Repayment of Gold Loan
RBI/2009-10/342 March 5, 2010 All State and District Central Co-operative Banks Dear Sir, Repayment of Gold Loan State and Central Co-operative Banks grant loans for various purposes against the security of gold /gold ornaments as part of their lending policy. As per extant instructions (c.f. our circular RPCD.RF.BC.No.69/07.37.02/2002-03 dated January 31, 2003), banks charge interest at monthly rests on loans and advances granted for purposes other than agricultural and allied activities. 2. On a review, it has been decided to permit bullet repayment of gold loans up to Rupees one lakh as an additional option. State and Central Co-operative Banks are, therefore, permitted to lay down policies with the approval of their Board for sanction of gold loan with bullet repayment option subject to the following guidelines:
3. It is clarified that crop loans sanctioned against the collateral security of gold/gold ornaments shall continue to be governed by the extant income recognition, asset classification and provisioning norms for such loans. Yours faithfully, (R.C.Sarangi) |