MUMBAI, May 27 (Reuters) - The Reserve Bank of India said on
Monday banks would not be allowed to give loans against units of
gold exchange-traded funds (ETFs) and gold mutual funds.
As these products are backed by bullion and primary gold,
the restriction on grant of loan against gold bullion will be
applicable to loan against units of gold ETFs and units of gold
mutual funds, the central bank said in a statement.
The RBI also said that while giving loan against gold coins
sold by banks, the lenders should ensure that the weight of the
coins does not exceed 50 grams per customer.
In a separate statement, the central bank said no advances
should be given by non-bank financial companies (NBFCs) against
bullion, primary gold and gold coins.
The RBI also said NBFCs should not give loans for the
purchase of gold in any form including primary gold, bullion,
jewellery, coins, units of gold ETFs and units of gold mutual
(Reporting by Shamik Paul; Editing by Anand Basu)