NBFC Cash loan against Gold Limited to Rs 25k

Non Banking Finance Companies (NBFCs) cannot lend more than Rs. 25,000 in cash against gold, RBI said. The earlier provision for NBFC was that high value loans against gold of Rs.1 lakh and above must only be disbursed by cheque. RBI reduced the amount to Rs.25,000 from the earlier Rs. 1lakh in line with the provisions of the I-T Act.“...the relevant threshold under the Income Tax Act, 1961is Rupees Twenty thousand,“ the central bank said, while amending the provisions for disbursal of loan amount in cash by NBFCs.This assumes significance in the backdrop of government's focus on less cash economy.

The Economic Times New Delhi,10th July 2017

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