Mumbai: The Reserve Bank of India yesterday relaxed the norms by allowing Loan-To-Value (LTV) ratio to be done at the average of the closing price of 22 carat gold for the preceding 30 days.

The Bank has prescribed that the valuation of gold jewellery for arriving at the Loan-To-Value (LTV) shall be done at the average of the closing price of 22 carat gold for the preceding 30 days as quoted by the Bombay Bullion Association Ltd (BBA), the apex bank said in a notification.

It has been decided that NBFCs may also use the historical spot gold price data publicly disseminated by a commodity exchange regulated by the Forward Markets Commission, it added.UNI ASH SB 2102.