RBI/2023-24/66
DOR.CRE.REC.42/07.10.002/2023-24

October 6, 2023

Primary (Urban) Co-operative Banks other than Salary Earners’ Banks

Madam / Dear Sir,

Gold Loan – Bullet Repayment – Primary (Urban) Co-operative Banks (UCBs)

Please refer to the circular UBD.BPD.(PCB).Cir.No.25/13.05.001/2014-15 dated October 30, 2014, in terms of which UCBs were permitted to extend gold loans up to ₹2.00 lakh with bullet repayment option, subject to certain conditions.

2. Reference is also invited to para 5 of our circular DOR.CRE.REC.18/07.10.002/2023-24 dated June 8, 2023 wherein it is stated that incentives to UCBs meeting the Priority Sector Lending (PSL) targets shall be announced separately. Accordingly, as announced vide para 3 of Statement on Developmental and Regulatory Policies dated October 6, 2023, it has been decided to increase the monetary ceiling of gold loans that can be granted under the bullet repayment scheme, from ₹2.00 lakh to ₹4.00 lakh for those UCBs who have met the overall PSL target and sub targets as on March 31, 2023 and continue to meet the targets and sub-targets as prescribed at para 2 of our circular dated June 8, 2023, ibid.

3. The limits prescribed above are effective from the date of this circular. All other provisions of the aforesaid circulars remain unchanged.

Yours faithfully,

(Manoranjan Mishra)
Chief General Manager