Why RBI does not allow banks to lend against gold mutual funds and gold ETFs?
RBI allows gold loans against gold jewellery, ornaments and even gold coins (up to 50 grams). However, RBI does NOT allow loans against gold ETFs, gold mutual funds, digital gold, or any other form of financial assets backed by primary gold. And this is very crisply mentioned in the RBI Master Circular on gold loans.… Continue Reading