Monetary Ceiling Of Gold Loans Increased To 4 Lakhs For UCBs By RBI

The Reserve Bank of India (RBI) has increased the monetary ceiling of gold loans under the Bullet Repayment Scheme for UCBs to meet the required Priority Sector Lending (PSL) target from Rs 2 lakh to Rs 4 lakh in order to ease the difficulties faced by the Urban Co-operative Banks (UCBs), according to a statement released by the Ministry of Cooperation on Monday.

The step is a part of several initiatives to strengthen cooperatives and treat them equally with other types of economic entities, both as beneficiaries and participants, that have been undertaken under the direction of Prime Minister Narendra Modi, Union Home Minister Amit Shah, and Minister of Cooperation.

The RBI announced on Friday that for UCBs that have met the overall PSL target and sub-targets as of March 31, the maximum amount of gold loans that can be granted under the bullet repayment scheme will increase from Rs 2 lakh to Rs 4 lakh.

A historic decision was recently made by the Ministry of Cooperation to fund the Centre for Computerization’s registration of cooperatives in the states, Union Territories (UTs), and Agriculture and Rural Development Banks (ARDBs).

This programme is expected to cost a total of Rs 225.09 crore and will allow people to quickly access services offered by state cooperative departments and ARDB offices. It will also bring transparency and uniformity to the way these offices operate, enhancing their efficiency and reducing the amount of time spent on administrative tasks.

A centrally sponsored plan has been approved for the computerization of 1,851 units of ARDBs of 13 states through a national unified software and the computerization of offices of Registrar of Cooperatives of all states and UTs similar to Central Registrar, following the model of the country’s Primary Agriculture Credit Societies (PACS) computerization scheme.

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