July 22, 2014 / 12:31 PM / in 3 years

India cbank sets rules for loans against gold intended for non-farm use

MUMBAI, July 22 (Reuters) - Reserve Bank of India said on Tuesday loans for non-agricultural purposes backed by pledges of gold ornaments and jewellery had to have a loan-to-value ratio of 75 percent against the pledged items.

The tenure of such loans could also not exceed 12 months, the RBI said in its statement on Tuesday.

The RBI added banks would be allowed to make their own decisions on the ceiling amount for such loans.

For full RBI release see bit.ly/1pzPydp (Reporting by Suvashree Dey Choudhury; Editing by Rafael Nam)

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