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Banks ask RBI to frame policy for silver loans


Several banks have reached out to the Reserve Bank of India (RBI) to seek a framework for silver metal loans similar to the existing gold metal loans, The Economic Times (ET) reported on Friday. An official quoted in the report said that jewellery manufacturers have been asking banks to extend loans for the procurement of silver, silver articles and for jewellery manufacturing.


Under the current Gold Monetisation Scheme, 2015, banks can extend gold loans to jewellery exporters or domestic manufacturers. The loan, equivalent to the value of gold borrowed, needs to be repaid in rupees. But the borrowers also have the option to repay a part of the loan in physical gold in lots of one kilogram or more.


The official quoted above also said that India's silver exports touched Rs 25,000 crore last year, and there is a high demand for credit in the sector.



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