The Reserve Bank of India (RBI) has increased the existing limit of gold loans under the bullet repayment scheme from Rs 2 lakh to Rs 4 lakh in certain urban co-operative banks. Those urban co-operative banks who have met the overall target and sub-targets under the priority sector lending as on March 31, 2023, are allowed to provide this option, said the central bank.
In a statement released by RBI on October 6, the central bank said, “With a view to incentivising UCBs that have met the prescribed PSL targets as on March 31, 2023, it has been decided to increase the monetary ceiling of gold loans that can be granted under the bullet repayment scheme from Rs 2 lakh to Rs 4 lakh for such UCBs who have met the overall PSL target and sub targets as on March 31, 2023.”
“These banks will be required to continue to meet the targets and sub-targets thereafter. Detailed guidelines on the matter will be issued separately,” RBI said.
“This measure is in pursuance of our earlier announcement that suitable incentives shall be provided to urban co-operative banks that have met the priority sector lending targets as on March 31, 2023,” said RBI Governor Shaktikanta Das while announcing the decisions of RBI Monetary Policy Committee on October 6, 2023.
