RBI doubles gold loan limits for urban cooperative banks to Rs 4 lakh

The RBI has doubled the lending limits for gold loans under the bullet repayment scheme for urban cooperative banks (UCBs) to Rs 4 lakh. This decision comes as a part of the RBI’s plan to provide incentives to UCBs that have met the prescribed Priority Sector Lending (PSL) targets. Additionally, the RBI will be issuing a comprehensive regulatory framework for project finance and allowing non-bank lenders to use Credit Risk Mitigation instruments.