**Summary:**
This circular, RBI20232466 DOR.CRE.REC.4207.10.002202324 dated October 6, 2023, issued by the Reserve Bank of India (RBI) to Primary Urban Cooperative Banks (UCBs) other than Salary Earners Banks, revises the monetary ceiling for gold loans under the bullet repayment scheme. The circular amends the previous directive UBD.BPD.PCB.Cir.No.2513.05.001201415 dated October 30, 2014.
The key change is an increase in the maximum permissible gold loan amount under the bullet repayment option from ₹2.00 lakh to ₹4.00 lakh. This increase is applicable specifically to UCBs that have met both the overall Priority Sector Lending (PSL) target and sub-targets as of March 31, 2023, and continue to meet the targets and sub-targets as prescribed in circular DOR.CRE.REC.1807.10.002 202324 dated June 8, 2023.
The revised limit is effective from October 6, 2023, the date of this circular. All other provisions outlined in the previous circulars remain unchanged.
For further information, contact Manoranjan Mishra, Chief General Manager, Department of Regulation, Central Office, Central Office Building, 12th-13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001. Telephone numbers: 22661602, 22601000. Fax number: 022-2270 5691.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the issuing authority of the circular.
Primary Urban Cooperative Banks: A type of cooperative bank in India, the target audience of the circular.
Gold Loan Bullet Repayment: A specific type of loan offered by UCBs, the subject of the circular.
Priority Sector Lending: A scheme by Reserve Bank of India to provide loans to specific sectors of the economy.
Manoranjan Mishra: Chief General Manager, Department of Regulation, Reserve Bank of India, signatory of the circular.
Mumbai, Maharashtra: City in India where the Central Office of the Reserve Bank of India is located.
UBD.BPD.PCB.Cir.No.25/13.05.001/2014-15 dated October 30, 2014: Previous circular regarding gold loans issued by the Reserve Bank of India.
DOR.CRE.REC.180/7.10.002/2023-24 dated June 8, 2023: Previous circular regarding Priority Sector Lending issued by the Reserve Bank of India.
RBI/2023-24/66
DOR.CRE.REC.42/07.10.002/2023-24 October 6, 2023
Primary (Urban) Co-operative Banks other than Salary Earners’ Banks
Madam / Dear Sir,
Gold Loan – Bullet Repayment – Primary (Urban) Co-operative Banks (UCBs)
Please refer to the circular UBD.BPD.(PCB).Cir.No.25/13.05.001/2014-15 dated
October 30, 2014, in terms of which UCBs were permitted to extend gold loans up
to ₹2.00 lakh with bullet repayment option, subject to certain conditions.
2. Reference is also invited to para 5 of our circular DOR.CRE.REC.18/07.10.002/
2023-24 dated June 8, 2023 wherein it is stated that incentives to UCBs meeting the
Priority Sector Lending (PSL) targets shall be announced separately. Accordingly, as
announced vide para 3 of Statement on Developmental and Regulatory Policies dated
October 6, 2023, it has been decided to increase the monetary ceiling of gold loans
that can be granted under the bullet repayment scheme, from ₹2.00 lakh to ₹4.00 lakh
for those UCBs who have met the overall PSL target and sub targets as on March 31,
2023 and continue to meet the targets and sub-targets as prescribed at para 2 of our
circular dated June 8, 2023, ibid.
3. The limits prescribed above are effective from the date of this circular. All other
provisions of the aforesaid circulars remain unchanged.
Yours faithfully,
(Manoranjan Mishra)
Chief General Manager
__________________________________________________________________
िविनयमन िवभाग, क��ीय कायार्लय, क��ीय कायार्लय भवन, 12व�/ 13व� मंिज़ल, शहीद भगत �संह माग,र् फोटर्, मुंबई - 400001
टेलीफोन/ Tel No: 22661602, 22601000 फैक्स/ Fax No: 022-2270 5691
Department of Regulation, Central Office, Central Office Building, 12th/ 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001
�हदं ी आसान ह,ै इसका �योग बढ़ाइए