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The RBI additionally requested banks to overview their lending processes to verify if they’re in compliance with the regulator’s gold mortgage pointers. The RBI sought this info after it discovered that staff of two state-run banks manipulated its system to satisfy gold mortgage targets, they stated.
“The RBI can entry info on the Central Repository of Data on Giant Credit score (Crilc) for loans above ₹5 crore and Credit score Data Bureau India (Cibil) for small-ticket loans,” stated a senior financial institution official. “Nonetheless, it sought info from banks to grasp the character of frauds which isn’t captured below Crilc and Cibil, and to sensitise lenders,” he added.
The RBI didn’t reply to ET’s request for remark.
“The regulator initially acquired a whistle-blower criticism that stated staff of some banks had collaborated with pleasant clients and given them collateral-free gold loans. Later, the cash was credited again to the financial institution as reimbursement, making a lien towards it,” stated one other banker conscious of the whistle-blower’s criticism.
Additional, the complainant stated the department paid the processing price from its expense account, whereas curiosity cost was prevented by manipulating the system to backdate repayments.The RBI despatched the letter to banks across the time it banned IIFL Finance (on March 4) from giving new gold loans.
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