The State government has lifted the moratorium on credit societies for granting of gold loan.
The notification issued by the government says that the, a ban on loan against gold was imposed vide circular read above due to various irregularities noticed generally across various credit societies.
The notification says that the said ban was only an interim arrangement to stop the misuse. Gold security is supposed to be most sound collateral for any advance and such ban cannot be continued permanently which may further hamper the growth of credit societies in the State.
“In view of the above, the Government is pleased to revoke the ban and allow the credit societies to sanction loan against gold subject to compliance with the model procedures for gold loan framed by the Registrar of Co-operative Societies appended herewith,” it said.
These guidelines are issued under Section 68 of the Goa Co-operative Societies Act, 2001 for successful conduct of business for strict compliance in supersession of the earlier circular, the notification says.
