In a circular on September 30, the regulator pointed out irregularities in granting loans against gold ornaments and jewellery. This was after the central bank found issues in the sourcing of gold loans, valuation, due diligence, end-use monitoring, auction transparency, loan-to-value (LTV) ratio monitoring, and the application of risk weights. The regulator also found that rolling over gold loans with only part payment was a deficient practice.
