RBI Working Group Report – Gold Imports and Gold Loan NBFCs in India. Golden chance for Immediate Payment Service and eKYC.


 

On 06/02/2013, Reserve Bank India placed on its website the final report of the Working Group to Study the Issues Related to Gold Imports and Gold Loan NBFCs (non-banking finance companies) in India.

As a Safe ePayments motivator, the following two points of the report are of interest to me

 

01) Use of PAN Card for large gold loan transactions is advised;

02)Payment through cheque for large gold loan transactions may be tried;

01) Use of PAN Card:-If the main objective of the PAN Card, is as an Identity document and to be used at a later stage to monitor purchasers of huge amount of Gold, ‘Aadhaar’s eKYC’ is a better option.  There are chances that a PAN Card of the actual purchaser will not be mentioned in the purchase bill. In such cases, the PAN Card holder whose number is mentioned on the Purchase Bill, will unnecessarily be investigated by the Tax authorities or other related authorities.  ‘Aadhaar eKYC’, is comparatively a fool-proof alternative.  Of course, NBFC’s have to invest in the Biometric authentication machines.

02)Payment through cheque for large gold loan transactions may be tried: NEFT/RTGS is the better alternate. Of course, there will be issues like net connectivity in rural areas. But, in urban and Semi-Urban, I see no reason for cheques to be part of large gold loan disbursements.  Another alternate, which is 365 days a year, 24*7, is the Immediate Payment Service (IMPS) M2A mode.

Comments welcome!!

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2 thoughts on “RBI Working Group Report – Gold Imports and Gold Loan NBFCs in India. Golden chance for Immediate Payment Service and eKYC.”

  1. My loan was rejected. Credit Sudhaar was my choice. Initially they were slow. But their counsellors were able to handle all my queries. I will give Credit Sudhaar a positive review

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