Farmers, MSMEs can pledge gold and silver for bank loans: RBI
The Reserve Bank of India clarified on Friday that banks could extend agricultural and MSME loans against voluntarily pledged gold and silver. However, it must not violate collateral-free loan norms, ensuring the lending falls within the permissible collateral-free limit. The RBI said this move does not violate existing guidelines for collateral-free loans to the agriculture and MSME sectors.