<ul data-eligibleForWebStory="false"><li>RBI clarified that loans given to agriculture and MSE borrowers against 'voluntary pledge' of gold and silver are not in violation of norms.</li><li>There was confusion among RBI inspection teams regarding classification of loans involving gold and silver as collateral within the PSL norm.</li><li>The current collateral free loan limit for agriculture, including allied activities, is ₹2 lakh per borrower.</li><li>Banks can accept gold and silver as collateral up to the collateral free limit for agriculture and MSE borrowers without violating RBI norms.</li></ul>

Loans given to agri & MSE borrowers against ‘voluntary pledge’ of gold, silver not violation of norms: RBI

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