MANU/RMIC/0111/2020

Ministry : Reserve Bank of India

Department/Board : Department of Regulation

Circular No. : DoR.No.BP.BC/6/21.04.048/2020-2021
                   RBI/2020-2021/19

Date : 06.08.2020

Notification/ Circulars Referred : Circulars DBOD.No.BP.BC.27/21.04.048/2014-15 July 22, 2014 MANU/DBOD/0077/2014;DBR.RRB.BC.No.53/31.01.001/2016-17 dated February 16, 2017 MANU/RMIC/0007/2017 Circulars DBOD.No.BP.BC.27/21.04.048/2014-15 July 22, 2014 MANU/DBOD/0077/2014;DBR.RRB.BC.No.53/31.01.001/2016-17 dated February 16, 2017 MANU/RMIC/0007/2017

Citing Reference:
Circulars DBOD.No.BP.BC.27/21.04.048/2014-15 July 22, 2014 MANU/DBOD/0077/2014  Referred

DBR.RRB.BC.No.53/31.01.001/2016-17 dated February 16, 2017 MANU/RMIC/0007/2017  Referred

All Scheduled Commercial Banks
(Including Regional Rural Banks)

Madam/Dear Sir,

Loans against Gold Ornaments and Jewellery for Non-Agricultural End-uses

Please refer to the circulars DBOD.No.BP.BC.27/21.04.048/2014-15 July 22, 2014 and DBR.RRB.BC.No.53/31.01.001/2016-17 dated February 16, 2017. Under the extant guidelines, loans sanctioned by banks against pledge of gold ornaments and jewellery should not exceed 75 per cent of the value of gold ornaments and jewellery.

2. With a view to further mitigate the economic impact of the Covid19 pandemic on households, entrepreneurs and small businesses, it has been decided to increase the permissible loan to value ratio (LTV) for loans against pledge of gold ornaments and jeweller........