RBI tightens rules for lending against gold

New Delhi: The Reserve Bank of India (RBI) has tightened rules for finance companies which lend against gold.



The RBI said lenders need to value the pledged gold at the average closing price of 22-carat gold for the preceding 30 days as quoted by the Bombay Bullion Association Ltd, to arrive at the loan-to-value ratio.

The ratio would remain at 60 percent for loans against jewellery.

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