RBI Doubles Gold Loan Limit for Regional Rural Banks to Rs. 2 lakhs


The Reserve Bank of India increased the gold loan limit for RRBs (Regional Rural Banks) to Rs 2 lakh from the current Rs 1 lakh to help the farmers and artisans have access to credit who are willing to pledge gold as collateral.

The limit has been doubled for the loans not exceeding 12 months from the date of sanction.Besides, the facility will be available with bullet repayment scheme. 
Under the scheme, while interest will be charged on a monthly basis on the total outstanding, it will become due for payment along with principal only at the end of 12 months from the date of sanction.
However, RBI has also directed that the gold loans should not exceed 75% of the value of the gold pledged for taking the loan. 
What can be the possible questions of above news

Q1. How much the RBI increased the gold loan limit for RRBs  from the current Rs 1 lakh to help the farmers and artisans have access to credit who are willing to pledge gold as collateral, recently?
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Source- The Hindu

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