MANU/RMIC/0367/2015
Ministry : Reserve Bank of India
Department/Board : Department of Co operative Banking Regulation
Circular No. : DCBR.BPD.(PCB/RCB).Cir.No.3/13.05.001/2015-2016
RBI/2015-2016/207
Date : 15.10.2015
Notification/ Circulars Referred : Circulars UBD.CO.BPD.PCB.Cir.No.60/13.05.001/2013-14 dated May 09, 2014 MANU/RMIC/0063/2014;RPCD.RRB.RCB.B.C.No.8/03.05.33/2014-15 dated July 01, 2014 MANU/RMIC/0103/2014
Citing Reference:
Circulars UBD.CO.BPD.PCB.Cir.No.60/13.05.001/2013-14 dated May 09, 2014 MANU/RMIC/0063/2014 Referred
RPCD.RRB.RCB.B.C.No.8/03.05.33/2014-15 dated July 01, 2014 MANU/RMIC/0103/2014 Referred
The Chief Executive Officers
All Primary (Urban) Co-operative Banks/State/Central Cooperative Banks
(St CBs/ CCBs)
Dear Sir/Madam
Advance against Pledge of Gold ornaments/jewellery
Please refer to para 3 of the circulars UBD.CO.BPD.PCB.Cir.No.60/13.05.001/2013-14 dated May 09, 2014 and RPCD.RRB.RCB.B.C.No.8/03.05.33/2014-15 dated July 01, 2014 wherein it was stipulated that in order to standardize the valuation and make it more transparent to the borrower, gold jewellery accepted as security/ collateral will have to be valued at the average of closing price of 22 carat gold for the preceding 30 days as quoted by Indian Bullion and Jewellers Association Limited [Formerly known as Bombay Bullion Association Limited (BBA)].
2. On a review, it has been decided that the cooperative banks may also use the historical spot gold price data of the preceding 30 days publicly disseminated by a Commodity Exchange regulated by the Securities and Exchange Board of India.
Yours faithfully
(Suma Varma)
Principal Chief General Manager