CURRENT AFFAIRS

Detailed explanation-1: -RBI reduced the amount to Rs 25, 000 from the earlier Rs 1 lakh in line with the provisions of the Income Tax Act.

Detailed explanation-2: -NBFCs which offer gold loans include Muthoot Finance, Manappuram Finance etc. What is the least and most you can borrow? The amount of money a person can borrow against a gold item varies depending on the lender. ICICI Bank, for example, offers gold loans ranging from Rs 10, 000 to Rs 1 crore.

Detailed explanation-3: -A circular issued by the RBI relaxed the lending norms for gold loans by increasing the LTV from 75% to 90%. The RBI guidelines for gold loans allow lenders, whether banks or NBFCs, to lend up to 90% of the gold jewellery value.

Detailed explanation-4: -As per the extant regulations, every NBFC is required to maintain a minimum capital ratio of 15 per cent of its aggregate risk-weighted assets (including both on and off-balance sheet items). To further strengthen their capital position, the PCA framework for NBFCs will be made effective from October 1, 2022.

Detailed explanation-5: -2.00 lakh subject to the following conditions: (i) The period of the loan shall not exceed 12 months from the date of sanction. (ii) Interest will be charged to the account at monthly rests but will become due for payment along with principal only at the end of 12 months from the date of sanction.