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image Systemic Improvement- Gold Loan Portfolio

1. Enhanced Due Diligence of Gold Appraiser:

  • Introduction of Cooling Period: Initially, Gold appraiser to be appointed for 1 year and thereafter renewal for another 2 years based on annual performance review. Thereafter there should be a provision for cooling period of 1 year which may also be incorporated in agreement.
  • Generation of CIBIL: CIBIL Report is to be scrutinized to check credit history and gold loan availment. If he has availed gold loan from other bank where he is on panel as gold appraiser, then enhanced precautions to be taken.

2. Empanelment a pool of gold appraiser:

  • Pool of gold appraiser to be empanelled. Further, unique code may be issued for every gold appraiser. Provision should be made in CBS for capturing the code of gold appraiser while opening / renewal of gold loan accounts.

3. Concept of Super Appraiser:

  • Reputed gold appraisers should be appointed as Super Appraiser at Regional Office level for reappraisal of gold ornaments / jewellery. SOP devised by Regional Office (RO) for re appraisal of gold loan security by Super Appraiser in the presence of RO / Branch Official especially in branches where large numbers of gold loan accounts are sanctioned.

4. Installation of Karatometer on pilot basis:

  • RABD may explore possibility of installation of Karatometer in those branches having large number of gold loan accounts

5. Special Gold Loan Audit:

  • Periodical reappraisal of security under gold loan.

6. Training to Staff of Gold Appraisal:

  • We propose, exploring of gold appraisal training program for branch staff to be implemented by the bank