RBI has vide its circular dated 6th August, 2020 given some leeway to the people suffering from economic crisis due to the covid pandemic by allowing banks to sanction loans against gold ornaments and jewellery upto 90% of the value of the gold ornaments and jewellery. This applies to householders, small businesses and entrepreneurs and the loan should be availed for non agricultural purpose only. The gold ornaments and jewellery should of course be pledged with the bank as a security.
This will give much needed relief to the people and small businesses suffering from immense cash crunch in the economy due to the covid pandemic. Also the gold prices have gone up so that should help the borrowers as well.
Copy of the circular is available here i.e https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11944&Mode=0