RBI Policy: Monetary Ceiling Of Gold Loans Under Bullet Repayment Scheme Hiked From Rs 2 Lakh To Rs 4 Lakh

New Delhi: Announcing its Monetary Policy Review on Friday, the Reserve Bank of India (RBI) said that gold loan under bullet payment scheme has been doubled from Rs 2 lakh to Rs 4 lakh for Urban Cooperative Banks (UCBs).

"UCBs have been permitted an extended glide path for achievement of PSL targets, beyond March 2023. 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 ₹2.00 lakh to ₹4.00 lakh for such UCBs who have met the overall PSL target and sub targets as on March 31, 2023," said an RBI release. 

The central bank added that such UCBs will be required to continue to meet the targets and sub-targets thereafter. 

RBI will issue a detailed guideline regarding the matter separately, it said. 

"Incidentally, in terms of our circular, DOR.CRE.REC.18/07.10.002/2023-24 dated June 8, 2023, granting extension of time for achieving the Priority sector lending targets it was clarified that incentives to UCBs meeting the PSL targets shall be announced separately," RBI said.