Action against banks. NBFCs if gold auction norms violated

 

NIRMALA SITHARAMAN

Finance Minister Nirmala Sitharaman on Monday told Lok Sabha action will be taken in case there are violations of well laid down processes for auctioning of gold by banks and non banking financial companies (NBFCs) when a borrower fails to pay gold loan. There is a process for giving enough number of notices to bank account holders. In the eventuality of a borrower not coming back to pay, the bank or NBFC will be forced to go for an auction, the Minister said.