01.11.2012 - India: Banks can't lend to jewellers for purchase of gold: RBI
After putting curbs on non-banking finance companies (NBFCs) lending against gold, the Reserve Bank of India on Tuesday banned banks from lending for purchase of gold by jewellers. "No advances should be granted by banks against gold bullion to dealers or traders in gold if, in their assessment, such advances are likely to be utilised for purposes of financing gold purchase at auctions or speculative holding of stocks and bullion," the RBI said in its half-year review of the monetary policy. The RBI has been concerned over banks' exposure to gold finance companies and has taken steps to curb it...............................................Full Article: Source
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