In the recent past, there has been a spurt in the export of silver and silver jewellery. For this reason bullion traders are continuously demanding loans from banks to buy silver and make its jewellery. However, due to the lack of clarity in the rules, banks are facing difficulties in this. In view of this, banks have demanded RBI to clarify the rules and guidelines for Silver Metal Loan like Gold Metal Loan.
Will keep the matter in front of RBI
In a report of Economic Times, quoting sources, it has been told that in the last one year there has been a lot of increase in silver exports. This is the reason why the bullion traders of the country are demanding loans from the banks to buy silver and silver articles and to make their jewellery. Sources said that the banks decided to take up the issue with the Reserve Bank in a meeting last month.
There is a lot of demand for loans
According to the news, the export of silver has reached close to 25 thousand crore rupees. There is a lot of demand for loans in this sector. In such a situation, the way there is a clear framework for giving loans for the purchase of gold and manufacturing of gold ornaments, the same needs to be prepared in the case of silver. As per the extant rules of the Reserve Bank, the nominated banks have got the right to import gold. Banks that are included in the Gold Monetization Scheme 2015 can provide gold metal loans to domestic businessmen who export or manufacture gold jewellery.
Uses here other than jewelry
Silver is also counted among expensive metals like gold. Apart from jewellery, silver is widely used industrially. Because of this, apart from gold on silver, the trend of industrial metals is also affected. According to the report, many people in the banking world believe that manufacturing and exporting silver jewelery is the same as gold jewellery. In such a situation, if the Central Bank sets clear guidelines, then the manufacturer or trader will not be able to violate the existing rules.
The momentum will continue even further
The latest data from the Gem Jewelery Export Promotion Council i.e. GJEPC shows that during the financial year 2022-23, the export of silver jewelery increased by 16.02 per cent to reach Rs 23,492.71 crore. A year ago, silver jewelery worth Rs 20,248.09 crore was exported. Silver market is expected to remain strong during the coming years as well.
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