Monetary policy: UCB gold loan limit, CoF tokenisation facility, and more

UCB gold loan: RBI doubles limit to Rs 4 lakh

The Reserve Bank of India (RBI) on Friday announced an increase in the monetary ceiling of gold loans that can be availed under the bullet repayment scheme from Rs 2 lakh to Rs 4 lakh for urban cooperative banks (UCB) that have complied the general PSL objective and sub-objectives as of March 31.

NBFCs in the middle base tier can offset risks

The Reserve Bank of India has allowed middle and base tier non-banking financial companies (NBFCs) to offset their exposures with eligible credit risk transfer instruments. Earlier, only NBFCs in the top tier were allowed to make such compensations.

CoF tokenization facility at the issuer’s bank level

The Reserve Bank of India has proposed to introduce card-on-file (CoF) token creation facilities directly at the issuer bank level. Currently, CoF tokens can only be created through the merchant’s applications or on their web page. The measure increases convenience for cardholders.

PM Vishwakarma beneficiaries under PIDF scheme

The RBI has proposed to extend the Payments Infrastructure Development Fund (PIDF) scheme by two years till December 31, 2025 and has proposed to include beneficiaries of the PM Vishwakarma Scheme in all centers under it.