• A certificate should be appended in that register (in respect of each of the loan accounts where the

jewels were auctioned) to the following effect and signed by the Manager and this register has to be
kept in Double Lock and taken out whenever need arises.

“The following items of gold jewellery were auctioned today for Rs ……………..Surplus Proceeds of
Rs..........credited to SB Account/kept in Sundry deposits.”
SL .NO ITEM GROSS WEIGHT REMARKS

Date: Signature of Manager with Seal

▪ Notice regarding auction held and the sale proceeds is to be intimated to the borrower in the format
as per Annexure X by Registered Post Acknowledgement Due, soon thereafter charges incurred in
sending such notice should be recovered from the borrower either by debiting to his operative account
or from surplus sale proceeds.

• A summary of the circumstances leading to the sale, details of the auction proceedings, the name of
the highest bidder, the amount realized and the manner in which it has been disposed of, should be
recorded in duplicate and witnessed by as many of the disinterested persons present at the auction as
possible. A copy of the recorded note along with the report of auction held is to be sent to the
concerned Regional Office as per Annexure X .
▪ Bank may fail to recover the value of the gold if the market price of the gold is falling sharply / absence
of buyers. Wherever branches are not able to recover the value of the gold, branch should re-fix the
revised reserve price and proceed with next round/s auction by reducing the reserve price. The
Regional Head is empowered to reduce the reserve price up to 10% the first auction price. Beyond 10%
the powers are with the Field General Manager. It should be the endeavour of the branch/office to
complete the gold auction / realization of dues to the shortest possible time.

For detailed guidelines Refer Gold loan policy IC 03605/2022 Dt. 30.09.2022

Classification: Internal 5
 ANNEXURE II
First Reminder for Agri / Non- Agricultural Gold loan accounts
---------------- Branch
Date:

Sri/Smt

Dear Sir/Madam,

Sub: GL No dated for Rs.

This has reference to subject Gold Loan account with our Bank for an amount of
Rs ............................ availed by you.
*It is observed that the outstanding in your account as on …………………(date) is Rs……………….
Which translates into the lower than the agreed margin of ……………% or higher LTV of ................... %
Due to change in the Rate of Interest, non-servicing of interest / instalment and / or fall inthe price
of gold pledged against this loan.
*It is observed that you are not adhering to the repayment schedule as agreed and hencearrears have
fallen in the account. The details are as under:

Principal:
Interest Due
Other charges
Total amount due

intoshall
We your be thankful if you kindly arrange to deposit /pay a sum of Rs.
above mentioned gold loan account OR arrange to pledge the additional gold ornaments in
consultation with the Branch, in order to regularise your account within 7 days from the dateof receipt
of this letter.
Further please be informed that any delay in payments of dues/instalments on your part, shall be
reported to Credit Information Companies, as the same is mandatory. Any adverse remarks/non-
payment of above said amount could adversely impact your credit rating, whichwill affect your ability
to raise loans on beneficial terms in future.
Yours faithfully,

Branch Manager

*Strike off whichever is not applicable

Classification: Internal 6
 ANNEXURE III
Second Reminder for Agri Gold loan accounts/Non-Agri Gold Loans
Branch
Date:

Sri/Smt

Dear Sir/Madam,

Sub: GL No dated for Rs.

Please refer to out letter No……………... dated ………………………… advising you with regard to
maintenance of adequate margin/regularise your captioned loan account. In spite of our reminder
your above account is yet to be regularised. We shall be obliged if you would kindly regularise the
account
or arrangeby to
depositing
pledge the
a sum of Rs
extra gold ornament(s) in consultation with the Branch within 15 days as continuous defaults in
clearing the dues will not be in your own interest. If you have any difficulty in making thepayment,
you are requested to call on us for a discussion.
Total Amount Due as on date: Rs. .00
Further, please be informed that any delay in payment of dues/ instalments on your part, shall be
reported to Credit Information Companies, as the same is mandatory. Any adverse remarks / non -
payment of above said amount could adversely impact your credit rating , which will affect your
ability to raise loans on beneficial terms in future.
We look forward to receiving your cooperation in this regard

Yours faithfully,

Branch Manager

Classification: Internal 7
 ANNEXURE IV
Final Reminder cum auction letter for Agriculture Gold loans
Branch
Date:
Sri/Smt

Dear Sir/Madam,
Ref:
Sub: Gold Loan A/c No for Rs.

Please refer to our letter No……………... Dated ………………………… advising you to maintain adequate
margin/regularize your captioned loan account.
In consideration / securing the subject credit facility you have executed the following
documents:
•
•
You have acknowledged your liability under the said credit facility by your letter dated
. Now there is due and payable by you to the bank under the credit / loan facility
a sum of Rs . .00/ (Rupees
only) inclusive of interest upto . Despite repeated requests you have failed and
neglected to pay the said outstanding dues and interest thereof.
We hereby finally call upon you to pay to the bank the said sum of Rs.
% with interest at
compounded
till quarterly/half
payment OR arrange yearly from
to pledge the extra gold ornament(s) in consultation with the Branch within 15 days from the date of
receipt hereof, failing which the Bank will be constrained to sell the gold ornaments pledged by you
with the Bank by following due procedure and appropriate the sale proceeds to your loan account by
conducting auction on the date and place as mentioned hereunder.
Date of Auction: ----
Place of Auction:--
Identification of jewellery for auction is at the sole discretion of the Bank.Kindly call

on the undersigned for further information, if any required.

Yours faithfully,

MANAGER *Strike off whichever is not applicable

Classification: Internal 8