Fresh guidelines to cooperative societies for auctioning pledged gold


Biju Paravath

1 min read
Read later
Print
Share

Representative image | Photo: AFP

Thiruvananthapuram: The Department of Cooperation has issued a fresh set of guidelines for cooperative banks and societies to auction pledged gold. The cooperative society registrar’s decision came after noticing serious issues in the sector.

Intermediaries collude to ensure that the gold does not cost more than the loan amount, the registrar was informed. If the auction gains more than the loan amount, the borrower is entitled to get it.

The provisions in the new guidelines give permission for emergency auctions when the loan matures or the gold rate falls. Participation of at least three people required. Bank or society employees should not take part in the auction.

A notice should be issued to the borrower 14 days prior to the auction. The guidelines state that if the borrower pays back half of the due amount after receiving the notice and asks for 30 days to pay back the rest, the bank should allow it.

The auction price should not be less than 85 per cent of the 30-day average market rate. If an amount higher than the loan amount is received during the auction, the excess amount should be handed over to the borrower within seven days.

However, if the auction amount is lesser than the loan amount, then steps should be taken for confiscation to retrieve the remaining amount.

Add Comment
Related Topics

Get daily updates from Mathrubhumi.com

Newsletter
Youtube
Telegram
Disclaimer: Kindly avoid objectionable, derogatory, unlawful and lewd comments, while responding to reports. Such comments are punishable under cyber laws. Please keep away from personal attacks. The opinions expressed here are the personal opinions of readers and not that of Mathrubhumi.

IN CASE YOU MISSED IT
jawahar kareem

1 min

Man abducts woman after threatening to pour acid on her body in EKM

Sep 21, 2023


Representational Image | Photo: Mathrubhumi

1 min

Man hacks friend to death following dispute over Thiruvonam bumper in Kollam 

Sep 21, 2023


onam bumper

1 min

Onam Bumper: Kerala awaits to hear from lucky winner

Sep 21, 2023