Question: The Reserve Bank of India notified change in cash for gold policy and capped it at 20000 rupees. What was the previous limit of cash for gold?
(a) 1,00,000
(b) 50,000
(c) 750,000
(d) 1,50,000
Ans: (a)
- On 9th March, 2017, The Reserve Bank of India notified change in cash for gold policy.
- According to the new policy, Non-banking finance companies (NBFCs) will not be able to give more than Rs. 20,000 in cash against gold loans.
- Earlier, gold loans above Rs. 1 lakh were made mandatory to be disbursed though cheques.
- The notification is based on the requirements under the Income Tax Act, 1961, as amended from time to time, would be applicable to all NBFCs with immediate effect.
- Currently, the relevant threshold under the Income Tax Act, 1961 is Rupees Twenty thousand.
Reference:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI245682DBDDED23B4339B5DAF630A26BEED7.PDF
http://profit.ndtv.com/news/your-money/article-gold-loan-in-cash-restricted-to-rs-20-000-for-nbfcs-1668169