RBI tightens norms for lending against jewellery

The Reserve Bank of India (RBI) has asked NBFCs: -

• To value gold received as collateral at the average closing price of 22-carat gold for last 30 days
• Gold loan offering NBFCs to create safe storage infrastructure at all branches
• NBFCs told to get RBI nod to expand gold loans beyond 1000 branches
• NBFCs must keep records on verification of jewellery ownership
• NBFCs told to stop ads promising gold loans in 2-3 minutes.