RBI on Ver­i­fi­ca­tion of Own­er­ship of Gold

Consumer Voice - - Bfsi -

RBI has clar­i­fied that the ver­i­fi­ca­tion of own­er­ship of gold with the bor­rower need not nec­es­sar­ily be through orig­i­nal re­ceipts for the jew­ellery pledged – in­stead, a suit­able doc­u­ment may be pre­pared to ex­plain how the own­er­ship was de­ter­mined, par­tic­u­larly in each and ev­ery case where the gold jew­ellery pledged by a bor­rower at any one time or cu­mu­la­tively on loan out­stand­ing is more than 20 grams. RBI has also clar­i­fied that the need to give a cer­tifi­cate on the pu­rity of gold to the bor­rower at the time of sanc­tion­ing of the gold loan can­not be dis­pensed with. The cer­ti­fied pu­rity shall be ap­plied for de­ter­min­ing the max­i­mum per­mis­si­ble loan and the re­serve price for auc­tion.

Fur­ther, the NBFCs were di­rected to con­duct the auc­tion for sell­ing off gold (in cases where due no­tice had been given de­mand­ing re­pay­ment of loan taken against gold and where pay­ment had not been forth­com­ing) in the same town or taluk in which the branch that had ex­tended the loan is lo­cated.

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