RBI Update - Lending Against Gold and Silver Collateral - Voluntary Pledge of Gold and Silver as Collateral for Agriculture and MSME Loans. (Applicable- All Scheduled Commercial Banks (including Regional Rural Banks and Small Finance Banks) All State Co-operative Banks and District Central Co-operative Banks)
The Reserve Bank of India (RBI) has clarified that banks can accept gold and silver as collateral for agriculture and MSME loans, even under the collateral-free limit, if the borrower offers it voluntarily.
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