Banks might tighten loans to jewellery sector

.....Bankers and jewellery exporters expect the Reserve Bank of India (RBI) to increase the margins on gold holding, as well the amount of collateral against which the loan is taken. Rajiv Popley, director of jewellery retailer and exporter Popley Group, said banks would highlight gems and jewellery traders and seek more collateral. Earlier, too, banks were wary of lending to diamond traders; now, with RBI considering tightening the norms, it would become very difficult for these traders to avail of loans.......

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