Categories: Business

RBI eases gold loan norms raises loan to value ratio to 90 percent

Photo: FILE

RBI eases gold loan norms

new Delhi. The Reserve Bank on Thursday raised the limit for lending against gold jewelery for non-agricultural purposes from 75 per cent to 90 per cent. This increased limit will be available by 31 March 2021. The RBI announced, after a policy review, that it "pledged gold jewelery and other jewelery for non-agricultural purposes to further reduce the economic impact of the Kovid-19 epidemic on households, entrepreneurs and small businesses." In respect of outgoing loans, it has been decided to increase the debt-to-debt ratio based on acceptable value from 75 per cent to 90 per cent. Detailed guidelines in this regard will be issued by RBI later on Thursday. After the new rule, people will now be able to get more loan on their jewelery, and their cash problem will be less.

With this, the Reserve Bank said on Thursday that the inflation rate may remain high in the second quarter (July-September) of the current financial year but it will come down in the second half of the year. Giving details of the findings and decisions of the three-day meeting of the Monetary Policy Committee here, Reserve Bank Governor Shaktikanta Das said that there are difficulties in the supply path, because of this there is inflationary pressure on all things. He said that even the global trade was weak and the initial signs of revival were weakened due to the rise of the Kovid-19 epidemic.

This post was published on August 6, 2020 5:09 pm

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