According to the Reserve Bank’s circular, banks should give an option to the creditors to return some part of the gold loan in the form of one kg or more of gold.
New Delhi. The Reserve Bank of India (RBI) on Wednesday directed banks to provide an option to jewelery exporters and domestic gold jewelery manufacturers to repay part of the gold (metal) loan (GML) in the form of physical gold. GML is paid on an amount equal to the value of the gold borrowed in Indian Rupees.
The Reserve Bank has now reviewed these rules. According to the Reserve Bank’s circular, banks should give an option to the creditors to return some part of the gold loan in the form of one kg or more of gold. However, it will have some conditions. As per the extant instructions, banks authorized to import gold and authorized banks participating in the Gold Monetization Scheme 2015 (GMS) can provide GML to jewelery exporters and domestic manufacturers of gold jewellery. In 2015, the government launched the Gold Monetization Scheme, which aims to monetize the gold held by households and institutions in the country.
RBI imposes fine on 3 co-operative banks of Maharashtra
RBI has imposed a total fine of Rs 8 lakh on three co-operative banks in Maharashtra. This penalty has been imposed due to lapse in regulatory compliance. A fine of Rs 4 lakh has been imposed on Excellent Sahakari Bank, Mumbai and Rs 2 lakh each on Janseva Sahakari Bank Ltd., Pune and The Ajara Urban Co-operative Bank, Ajara (Kolhapur).
Excelent Sahakari Bank has been fined for violating the guidelines on Maintenance of Deposit Accounts and KYC issued by RBI. Penalty has been imposed on Janseva Sahakari Bank for non-compliance of KYC rules properly. The central bank said that the penalty has been imposed on Azara Urban Co-operative Bank for non-compliance with the instructions issued on Maintenance of Deposit Accounts.
