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