RBI/2019-20/148
DOR.NBFC (PD).CC.No.108/03.10.001/2019-20 January 21, 2020 All Non-Banking Financial Companies (excluding Primary Dealers) Madam/Sir, Lending against security of single product – Gold jewellery Please refer to paragraph 27 of Master Direction – Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016; and paragraph 27 of Master Direction – Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016. 2. On a review, it has been decided that NBFCs can pool gold jewellery from different branches in a district and auction it at any location within the district, subject to meeting the following conditions: -
The first auction has failed. -
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. 3. Non-adherence to the above conditions will attract strict enforcement action. The aforementioned Master Directions are being modified accordingly. Yours faithfully, (Manoranjan Mishra)
Chief General Manager | |