RBI’s move to boost gold loans will help stressed SMEs and individuals. But risk management is key

It may well come as a lifeline for many embattled small businesses and distressed households in India. By effectively monetising the gold stashed away by Indians, the government hopes to give a boost to systemic liquidity, crucial to spurring spending and consumption, catalysing economic recovery in the process. Recently, the Reserve Bank of India (RBI) announced a hike in the loan-to-value ratio (LTV) on non-agriculture gold loans by banks

( Originally published on Sep 01, 2020 )

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