Money & Banking

RBI allows NBFCs to pool jewellery for sale

Our Bureau Mumbai | Updated on January 21, 2020

The Reserve Bank of India (RBI) has allowed Non-Banking Finance Companies (NBFCs) to pool gold jewellery from different branches in a district and auction it at any location within the district, subject to the condition that the first auction has failed.

In its circular on ‘Lending against security of single product – Gold jewellery’, the RBI said the NBFC shall ensure that all other requirements of the extant directions regarding auction (prior notice, reserve price, arms-length relationship, disclosures, etc) are met.

The central bank said non-adherence to the above conditions will attract strict enforcement action.

Published on January 21, 2020

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