New Delhi, April 9 -- India's central bank, the Reserve Bank of India (RBI), issued a new draft guideline for gold loans on Wednesday, April 9. The draft guideline has directed that lenders to have uniform documentation for such instruments to safeguard the people borrowing gold loans.

According to the official RBI announcement, the lenders who are dealing with gold loans are directed to ensure a "standardised procedure" which will help to determine the purity of gold collateral, its weight (gross as well as net), etc and procedure needs to be adopted uniformly across all branches of the lender.

(More to come... Please check back for updates.)

Published by HT Digital Content Services with permission from MINT....