रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय

प्ल ट सां.4, सेक्टि 10, द्व िक , नई दिल्ली - 110075

RETAIL ASSETS DIVISION HEAD OFFICE
PLOT NO. 4, SECTOR - 10, DWARKA, NEW DELHI - 110075
TO ALL OFFICES Date:30-08-2022

IN SUPERSESSION OF:

RAD Cir. No. 43 dated 27.04.2022

RAD Cir No. 66 dated 29.06.2022
RAD Cir No. 70 dated 05.07.2022

RAD CONSOLIDATED CIRCULAR NO: 100/2022

:53
PNB GOLD LOAN SCHEMES
I) SCHEME FOR ADVANCE AGAINST GOLD
JEWELLERY/GOLD
ORNAMENTS
23 5
II)
11
SCHEME FOR ADVANCE AGAINST SOVEREIGN GOLD BONDS
-20 64

Detailed guidelines regarding the aforesaid schemes have been circulated vide RAD
Consolidated Circular No. 43 dated 27.04.2022 and subsequent circulars issued on
-01 152

the above schemes from time to time.

2. In view of modifications proposed by field functionaries and after comparison of

5

our bank schemes with peer bank schemes, Board in its meeting dated 26.08.2022,
has approved the revised aforesaid Gold Loan and Sovereign Gold Bond schemes of
our Bank.

3. The changes in existing guidelines of aforesaid GOLD LOAN AND

10

SOVEREIGN GOLD BOND SCHEMES approved by the Board are placed at

Appendix - 1.

4. Accordingly, revised guidelines have been consolidated and are available as

under:
INDEX OF SCHEMES

Sr. No. Scheme Annexure

1 Scheme for Advance Against Gold Jewellery/ Annexure - 1
Gold Ornaments
2 Scheme for Advance Against Sovereign Gold Annexure - 2
Bonds

Page 1 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE

INDEX OF ANNEXURES

Sr. No. Scheme Annexure Form No.

Application cum Letter of Undertaking for
1 Loan against Gold Jewellery/Ornaments for Annexure A PNB
non-agriculture purpose 1278(R)
Memoranda for Deposit of Gold
2 Annexure B
Jewellery/Ornaments
3 Letter to the Defaulting Borrower Annexure C
4 Final Notice to the Borrower Annexure D
5 Process flow of PNB LENS Annexure E
6 SOP for sanctioning of gold loan Annexure F

:53
SOP for safe custody of
7 Annexure G
Jewellery/Ornaments
23 5
SOP for sale of Jewellery/Ornaments in NPA
11
8 Annexure H
A/cs
-20 64

Application for empanelment as Gold

9 Appraiser, BM Opinion report and Scoring Annexure I
-01 152

Model.

Agreement to be signed by the Appraiser for

10 Annexure J
empanelment
5

Loan application for advance against PNB

11 Annexure K
Sovereign Gold Bonds 2024(R)

12 Pledge/Hypothecation Form For SGB Annexure L PNB 2056

10

Advance against Sovereign Gold Bonds PNB 2025

13 Overdraft Agreement Annexure M

Details of Sovereign Gold Bond offered as PNB 2026

14 Annexure N
security.

15 Investor Request for Pledge/Lien Marking. PNBSGB I PNB 2027

Letter to be addressed to the Depository by PNB 2028

16 Loan Sanctioning Branch: Noting of Pledge/ PNBSGB II
Lien on the units of SGBs.

Letter to be addressed to the Depository by PNBSGB III PNB 2029

17
Loan Sanctioning Branch: Invocation of

Page 2 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Sr. No. Scheme Annexure Form No.
Pledge/ Lien on units of Sovereign Gold
Bonds (SGBS) & liquidation in favour of the
bank

Undertaking – Loans availed of by the PNB 2030

18 PNBSGB IV
applicant.

19 Consent Letter PNBSGB V PNB 2031

Letter to be addressed to the Depository by PNB 2032

the loan sanctioning branch: Removal of
20 PNBSGB VI
Pledge/Lien on units of Sovereign Gold
Bonds (SGBs)

:53
Letter to be addressed to loan sanctioning PNB 2033
branch by Depository: Confirmation of PNB SGB VII
23 5
21 11
Marking/Removal/Invocation of Pledge/Lien
-20 64

on units of Sovereign Gold Bonds (SGBs)

-01 152

5. All concerned are advised to go through the guidelines carefully and ensure
meticulous compliance of the same.

6. All Inspecting Officials are advised to note the guidelines to ensure its
5

compliance. In case of non-compliance of above-mentioned guidelines, the issue of

non-compliance may be flagged / reported to the competent authority for taking further
action in the matter.
10

(Arun Sharma)
General Manager

Encl: as above.
Index: PNB Gold Loan Scheme

Page 3 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE

Appendix-1
MODIFICATIONS IN THE EXISTING SCHEME

Sr. Observations/Existing Guidelines Approved Modified Criteria

No.
1 Nature of facility: - Demand Loan or Nature of facility: -
Overdraft. 1. Demand loan – Bullet repayment - A
variant of gold loan where repayment of
loan is permitted by way of bullet
repayment at the end of the term i.e.
maximum up to 12 months. There is no
requirement to service the interest or

:53
instalment during the loan term
2. Demand Loan - EMI BASED - A
traditional variant of Gold Loan with
23 5
11 repayment Facility in 36 Months
-20 64

3. Overdraft - The overdraft facility will be

sanctioned for a period of 12 months
-01 152

only subject to annual review

Interest debited in the account on monthly
basis to be recovered from the customer.
2 REPAYMENT CAPACITY: REPAYMENT CAPACITY: The borrower
5

Repayment capacity (Interest & must be having regular source of Income

principal) to be ascertained and to service the interest/EMI in the account.
ensured at the time of sanction, i.e.,
the net monthly income (after
10

deducting all statutory and other

dues/deductions/repayments
including repayment of interest on
present gold loan) of the borrower is
sufficient to meet the monthly interest.
3 LOAN TO VALUE(LTV): LOAN TO VALUE (LTV): -
i. 70%, in case borrower opts for I. Demand Loan – Bullet repayment
bullet repayment. LTV of 70% to be maintained at the time
ii. 75%, in case borrower opts to pay of sanction
interest as and when levied.
Note: ii.Demand LOAN - EMI BASED
iii Overdraft

Page 4 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Sr. Observations/Existing Guidelines Approved Modified Criteria
No.
LTV ratio not to exceed 75% of the LTV of 75% to be maintained at the time
value of security during the entire of sanction.
tenure of loan. Additional Guidelines: -
• The LTV of 75% must be maintained
throughout the tenor of the loan. Even
in case of Demand Loan – Bullet
repayment the LTV should not exceed
75% at any point of time.
• The LTV Ratio is to be computed
against total outstanding in the account
including accrued interest.

:53
• The LTV Ratio must be computed
against the current value of Gold.
• The margin requirement would have to
23 5
11 be re-worked whenever there is an
-20 64

increase in interest rates and also

when the market value of gold
-01 152

decreases.
Since the last two conditions i.e., upward
movement of Rate of Interest and
downward movement in price of gold can
5

happen any time, the Branches have to be

meticulous in sending the Notices to the
borrowers in case the LTV goes above
75%. The notices for maintenance of
10

margin of 25% are required to be sent on

the periodicity as mentioned below: -
a) On the day when LTV is above
75%, 1st Notice is to be sent.
b) If the above position continues then
2nd Notice is to be sent after 15 days from
1st Notice.
c) If still the above position continues
then 3rd Notice is to be sent after 30 days
from 1st Notice.
d) In case the borrower fails to
replenish the margin even after 3rd notice
the Branches will be required to

Page 5 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Sr. Observations/Existing Guidelines Approved Modified Criteria
No.
auction the gold ornaments as per extant
instructions of auctioning of Gold
Ornaments. This is mandatory irrespective
of the IRAC status of the account.

To Monitor LTV on regular basis by Zonal

Offices, Circle Offices and Branches a
report has been customized in EDW; path
of which is as under: -

EDW-PNB 2.0 REPORTS-RAD-RAD

:53
029-GOLD LOAN ACCOUNTS WITH
LTV ABOVE 75%
4 REPAYMENT: Gold loans to be REPAYMENT: Gold loans to be
23 5
sanctioned keeping in view the
11 sanctioned keeping in view the repaying
-20 64

repaying capacity (interest and capacity (interest and principal) of the

principal) of the borrower as per the borrower as per the following:
-01 152

following: The loan to be repaid by any of the

The loan to be repaid by any of the following option:
following option: i. OD facility to be renewed every
i. OD facility to be renewed once in year
5

every three years ii. Regular servicing of interest as and

ii. Regular servicing of interest as and when levied in case of Demand Loan –
when levied EMI based and Overdraft Account
iii. Repayment through Bullet iii. Repayment through Bullet
10

Payment i.e. payment of interest and Payment i.e. payment of interest and
principal principal at maturity max. up to 12 months
at maturity max. up to 12 months
iv. Principal being repayable within 12
months or as and when demanded
5 Processing Fee: - 0.75% of loanProcessing Fee: - 0.30% of loan amount +
amount. Minimum – Rs.500/- & Max –
GST or Rs. 500 + applicable Tax,
Rs.5000 whichever is higher.
6 Appraiser Fee – Rs.3/- per thousand,
Valuation Charges (Appraisal charges):
Maximum – Rs.300/- -
Applicable Gold Appraiser Fee should be
Reappraisal Charges: - Same as borne by the customer. The valuer will be
Appraisal Charges paid Rs.3/- per thousand with maximum

Page 6 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Sr. Observations/Existing Guidelines Approved Modified Criteria
No.
Rs.500/- Appraiser fee shall be recovered
Safe Keeping Charges: - No such from the borrower upfront and paid into
charges there earlier her/his account. It shall not be paid in
cash. However, Circle Head is empowered
to increase the max. limit of appraiser fee
up to Rs.700/- on case to case basis.

Re-appraisal Charges: -
The appraiser will be paid Rs.15/- per
pouch at the time of revaluation of
Jewellery.

:53
Safe keeping charges: -
Rs. 100/- per month or part thereof to be
charged and to be recovered after the
23 5
11 expiry of the prescribed tenure of gold
-20 64

Loan for every type of loan facility

(Currently 12/36 months respectively) as
-01 152

Safe Keeping charges after closure of loan

facility
7 No specimen of the ticket has been Specimen of the Ticket is as follows: -
prescribed. The ticket is to be
5

prepared in duplicate, one to be kept

inside the packet and other to be
BO: _________
fastened outside the packet
Name of the
borrower
10

Loan A/c No.

Loan amount
Date of loan
Weight of Gold
pledged

(Signature of custodian/Manager)
8 DOCUMENTATION: - DOCUMENTATION: -
Demand Loan (gold) Demand Loan (gold)
Application cum Loan Agreement (i) Application cum Letter of Pledge.
(PNB 944A) (Appendix – A) (Not to be stamped)
Master Agreement (PNB 2057)

Page 7 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Sr. Observations/Existing Guidelines Approved Modified Criteria
No.
Overdraft (gold) (ii) Memorandum of Deposit of gold
Application cum Loan Agreement Jewellery (Two copies), One to be handed
(PNB-944A) over to the customer. (Appendix-B)
Master Agreement (PNB 2057) Overdraft (gold): -
Demand Loan (SGB): - (i) Application cum letter of Pledge
1. - Loan application (PNB 2024) (Appendix-A) which is to be stamped as
2. Demand Pronote – PNB 728 per relevant state laws
(Stamped) (ii) PNB 2057 (Master Agreement)
3. Pledge/Hypothecation Form (iii) Memorandum of Deposit of gold
(PNB 2056) Jewellery (Two copies), One to be handed
4. Investor request for lien over to the customer. (Appendix-B)

:53
Marking (PNBSGB – I) (PNB Demand Loan (SGB): -
2027) No Change
5. Undertaking - loans availed of by
23 5
the applicant
11 Overdraft (SGB): -
-20 64

(PNBSGB - IV) (PNB 2030) No Change

6. Consent Letter (PNBSGB – V)
-01 152

(PNB 2031)
Overdraft (SGB): -
1. Loan application (PNB 2024)
2. Overdraft Agreement – (PNB
5

2025)
3. Master Agreement (PNB 2057)
4. Pledge/Hypothecation Form
(PNB 2056)
10

5. Investor request for lien Marking

(PNBSGB – I) (PNB 2027)
6. Undertaking - loans availed of by the
applicant (PNBSGB - IV) (PNB 2030)
7. Consent Letter (PNBSGB – V)
(PNB 2031)
8. Account Opening form of CA/OD
a/c

9 VERIFICATION BY SHROFF: VALUATION BY SHROFF:

No mention of methods of testing
purity of gold Jewellery by Shroff. (A) The purity of Gold should be
independently determined by the
Valuer/Shroff by using following
Page 8 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Sr. Observations/Existing Guidelines Approved Modified Criteria
No.
three methods based on the nature
of ornaments and satisfaction of the
branch Officials.
(i) Touch stone method
(ii) Nitric acid test
(iii) Specific gravity test

Services of empaneled Gold appraiser(s)

should be utilized to verify the
genuineness of the gold ornaments in
the presence of the designated staff at

:53
the cost of the borrower. Gold
appraiser(s) should submit a certificate
of purity and mass of gold on the
23 5
11 prescribed proforma.
-20 64

(i) Touch stone Method

-01 152

Under this method, Impressions visible

due to rubbing of gold ornaments with
touchstone are compared with the
standard gold impressions
5

(ii) Nitric Acid Test

This test is based on fact that purer the
gold, the stronger the acid required to
10

dissolve it. While applying strong acids

like Nitric acid to pure gold,
Impressions are not observed.
Similarly, after rubbing the gold
ornament to touchstone, few drops
should be applied on it and reaction to
be observed. A hard-cupric reaction
with more fumes indicates lots of
copper, mild cupric reaction with mild
fumes indicates ornament could be low
karat gold. No cupric reaction with
smear nature remaining unaltered,
ornament should be of pure gold.

Page 9 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Sr. Observations/Existing Guidelines Approved Modified Criteria
No.
(iii) Specific Gravity Test
Ornaments made from Solid Original
Gold with no extraneous matter, such
as precious or semi-precious stones,
etc. is to be tested by this method.
Following steps should be followed: -
(a) Weigh the ornament in air (say
weight is X),
(b) Weigh the ornament in water (say
weight is Y)
(c) Apply the following formulae:

:53
(Specific gravity of 24 carat gold is 19.3)
19.3 = X / (X-Y)
23 5
11 Y = X (19.3 -1) / (19.3)
-20 64

If ornaments are not made of solid gold

but contain silver or some base metal,
-01 152

the weight in water (Y) will be less than

the result indicated above.
10 Second valuation required if loan For sanction of advance against gold
amount is more than Rs.10.00 lac Jewellery above limit of Rs.5.00 Lac,
5

valuation of security and appraisal of gold

to be carried out by two empaneled
appraisers and the lower of the two to be
considered for finance.
10

11 RE-APPRAISAL OF GOLD RE-APPRAISAL OF GOLD JEWELLERY

JEWELLERY KEPT AS SECURITY KEPT AS SECURITY DURING
DURING ANNUAL/REGULAR ANNUAL/REGULAR INSPECTION
INSPECTION
NO CHANGE
Following Gold Loan Accounts are to
be re-appraised during NEW ADDITION: However, if the
annual/regular inspection of the borrower does not turn up despite giving
branch. Registered notice then packet may be
a) Branches where opened in the presence of independent
annual/regular inspection is being person and whole process be recorded
conducted within 12 months, 10% of under CCTV.
the regular jewel loans and all jewel

Page 10 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Sr. Observations/Existing Guidelines Approved Modified Criteria
No.
loans classified as NPA on the date of
regular/annual inspection
b) Branches where regular
inspection is being conducted in 12-
18 months, 15% of the regular jewel
loans and all jewel loans classified as
NPA on the date of regular inspection.
Such reappraisal to be done by an
appraiser other than the appraiser
who has appraised the
jewellery/Ornaments at the time of

:53
sanction. Further the standard gold
loan accounts should be selected in
such a way that no single standard
23 5
11
gold loan account should appear
-20 64

again in the sample selected for

subsequent year. If any spurious gold
-01 152

is found in any packet the entire

security of gold loan portfolio will be
subject to re appraisal. It is further
added that the reappraisal shall be
5

done in presence of borrower, branch

official (Incumbent/ Officer In charge)
and an independent person
(preferably a legal counsellor).
10

12 SALE OF SECURITY: SALE OF SECURITY: -

In case the loan is not adjusted within The procedure for auction of gold loans is
the stipulated period or there arises a as under:
cause for sale of security, following (a) If loan is due and repayment has
procedure is to be followed: not been made by the borrower, the
i. A Registered notice be sent to Bank has the right to sell the gold
borrower for adjustment of dues. ornaments pledged, after giving
ii. Another notice under Section 176 reasonable notice to borrowers
of Contract Act should be issued to (Section 176 of the Indian Contract
borrower after 15 days. However, if Act)
borrower does not respond, security (b) A notice for 15 days as per
be got valued again from the shroff for Annexure-C is to be sent to the
disposal and should be informed to

Page 11 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Sr. Observations/Existing Guidelines Approved Modified Criteria
No.
the borrower giving him option to borrower immediately after
clear the dues and get redeemed the classification of the account as NPA.
Jewellery before the date fixed for (c)A final notice as per Annexure-D must
sale. Thereafter the pledged security be sent by ‘Registered Post’ with
may be sold through private sale/to acknowledgement due to the borrower
jeweller in line with the valuation by or if he is dead then to all the likely
the shroff where the borrower will be claimants at the last known address
given option to be present. calling up the loan and stating, inter
iii. Minutes of the conduct of the sale alia, that the relative ornaments will be
(noting presence /absence of sold by public auction without further
borrower) should be prepared. reference if the loan account is not

:53
Persons present during the private closed within 15 days from the date of
sale (including borrower) shall sign the notice. The date of the proposed
the minutes. auction should be stated in the notice.
23 5
11
iv. Proceeds realized should be (d) If the registered letter being
-20 64

adjusted towards the dues. Excess refused, it must be kept unopened

realization, if any, should be paid to preferably on a separate file after
-01 152

the borrower(s). If dues are not fully making appropriate remark in the
adjusted, further steps should be Jewellery register (PNB-313).
initiated for recovery (e) The branch should advise the
borrower or his legal claimants, if he is
5

dead, that in the event of a forced sale,

if it is not possible to recover the
amount outstanding in the loan
account plus interest plus other
10

charges incurred for auctioning of gold,

then Bank will initiate legal recourse
against them for recovery of remaining
amount.

(f) Before putting gold ornaments on

auction, Gold appraiser other than
original appraiser will examine the gold
ornaments and valuation of each
ornament will be recorded.
(g) The proposed auction and auction
dates should be publicized in print
media/digital media/local publicity prior

Page 12 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Sr. Observations/Existing Guidelines Approved Modified Criteria
No.
to the date of auction. (All charges to
be equally debited to all the defaulting
borrowers account.)
(h) The auction should be held at the
Bank’s premises
(i) A reasonable minimum price must be
fixed for each ornament depending on
the valuer’s report and the current
market price and the bidding must start
form this amount. Every effort should
be made to realize the full market value

:53
of the security pledged.
(j) Each item of the ornaments must be
auctioned separately during auction,
23 5
11 the auction shall be stopped when the
-20 64

total amount realized is sufficient to

cover the outstanding plus interest in
-01 152

full.
(k)After closing the loan account with the
auction proceedings, surplus amount,
if any left, will be credited to
5

saving/current account of customer

maintained with us/DD in name of
borrower should be prepared and
handed over. If case arises that
10

borrower is not alive, DD should be

held in safe custody and disposal of
claim in favor of legal representatives
will be made as per Bank’s extant
claim disposal guidelines. The unsold
items of the gold ornaments, if any,
must be held as Safe Deposit article in
the joint custody of the Branch Manager
/ Accountant and Loan Officer/ Loan in
Charge and must be handed over to
the borrower or legal representative if
borrower is not alive, by following

Page 13 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Sr. Observations/Existing Guidelines Approved Modified Criteria
No.
Bank’s extant claim disposal
guidelines.
(l) Bank is required to pay GST on sale of
auctioned gold. The present rate of
GST on gold is 3%. The guidelines
regarding operational part has been
issued by Finance Division Cir.
No.21/2022 dated 08/07/2022.
(m) Minutes of the conduct of the sale
(noting presence/absence of borrower)
should be prepared in duplicate

:53
providing details of sale of gold
ornaments through Auction, highest
bidder name, realized amount and way
23 5
11 of disposal and to be witnessed by as
-20 64

many as independent persons present

at auction. A copy of same should be
-01 152

forwarded to Circle Office for

information. A certificate of sale to be
issued to the highest bidder
(n) A receipt from highest bidder of
5

gold ornaments sold at auction shall be

obtained on Jewellery Register (PNB-
313) along with a separate sheet of
paper and preserved along with other
10

documents of account.
13 No mention of the processing of Loan. PROCESSING OF DEMAND
GBB will sanction loan upto Rs.10.00 LOAN/OVERDRAFT: -
lac whereas loan above Rs.10.00 lac Processing of Demand Loan/Overdraft is
will be processed by PLPs. to be done through PNB LENS.

14 There should not be any restriction on There should not be more than 5 loan
no. of loan accounts to a single accounts to a single borrower provided the
borrower provided the total of all the total of all the loans sanctioned to an
loans sanctioned to an individual at individual at any point of time does not
any point of time does not exceed exceed Rs.25 lakh to avoid utilizing bank’s
Rs.25 lakh to avoid utilizing bank’s fund for speculative purpose.
fund for speculative purpose.

Page 14 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Sr. Observations/Existing Guidelines Approved Modified Criteria
No.
15 While doing valuation of The deduction towards wax, thread, stone
Jewellery/Ornaments, Shroff must and impurities will be as per finding of the
account for deduction towards wax, appraiser/Shroff on case to case basis.
thread, stone as assessed by him
with minimum 5 % of Gross weight in
respect of both hallmarked ornament
and other than hallmarked ornament
and further deduction in weight for
impurity of copper / silver contexts as
assessed by him with minimum of
further 5 % of the Gross weight of the

:53
ornaments in other than hallmarked
gold ornament. {mentioned under 17
(vi)}
23 5
11
16 No mention of Gold Retention limit GOLD RETENTION LIMIT: -
-20 64

per branch Gold retention limit of each authorized

branch will be decided by the Zonal
-01 152

Manager keeping in view the business

potential and other infrastructure available
in the branch. The retention limit will be
fixed on the basis of value of security. In
5

case of branch reaching 90% of gold

retention limit, the checking of gold
packets sanctioned during the year must
be got conducted by an auditor deputed by
10

Zonal Audit Office on the recommendation

of Zonal Manager.
17 No mention of capturing of Operative For recovery/ repayment of Interest/
Account for repayment of principal, Incumbents are advised as
interest/principal. under: -
➢ Operative Account of the customer
to be captured in CBS invariably
where customer is maintaining
account with our bank.
➢ In case customer is maintaining
account with other banks, recovery/
repayment of Interest/ principal be
considered only through

Page 15 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Sr. Observations/Existing Guidelines Approved Modified Criteria
No.
NACH/ECS/ RECS (Debit)
mandate of the customers for
debiting their accounts.
18 No provision of taking photograph of PHOTOGRAPH OF THE JEWELLERY: -
the Jewellery to be pledged If the Jewellery tendered by the customer
is found to be acceptable for granting
loan, then color photograph of all the
gold Jewellery to be pledged should be
taken. In case color printer is not
available, then clear black and white
photo must be held on record.

:53
Photograph to be taken in such a
manner that all the gold ornaments
must be clearly identifiable separately.
23 5
11 Two printout of the photograph should
-20 64

be taken. Following details should be

clearly mentioned overleaf of the
-01 152

photographs: -
➢ Name of the customer
➢ Account No.
➢ Loan Amount
5

➢ Date of Sanction
➢ Weight & Purity of the
Jewellery/Ornaments
The details so written must be signed
10

by the branch Official and customer.

One Photograph to be handed over
to the customer and other photo to be
kept with the loan documents.
19 No guidelines for use of Karatometer USE OF KARATOMETER: -
Zonal Managers may be empowered to
permit the installation of Karatometer in
selected branches based on the volume of
business and no. of loan sanctioned in the
branch. Karatometer should be used in
addition to the testing method adopted by
Shroff and not as a substitute of traditional

Page 16 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Sr. Observations/Existing Guidelines Approved Modified Criteria
No.
method of testing. AMC of Karatometer
should be in force.
20 No agreement was being taken while An Agreement as per Appendix-D will be
empaneling appraiser. signed between appraiser and Bank at the
time of empanelment.
21 The appraiser shall be seated in such The appraisal work is to be monitored/
a way that the appraisal work is captured under CCTV Camera with
monitored or captured under the complete view of appraising in process.
surveillance of CCTV Camera and CCTV recording of 180 days to be stored.
recording to be preserved for 90 days

:53
23 5
11
-20 64
-01 152
5
10

Page 17 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Annexure I

SCHEME FOR ADVANCE AGAINST GOLD JEWELLERY/ ORNAMENTS FOR

NON-AGRICULTURE PURPOSE

1. GENERAL GUIDELINES: -
1.1 Lending on the security of Gold Jewellery/Ornaments is one of the most
secured and quickest way of financing. Even though the lending is against
highly tangible security of gold ornaments/Jewellery, which are liquid,
however due care and diligence is required to avoid instances ofpledging
spurious Jewellery/ornaments.
1.2 Loan against gold Jewellery/ornaments is to be sanctioned only to the true

:53
owner of the jewels. A declaration has been incorporated in the
application-cum-letter of pledge to the effect that the applicant is the true
owner of the Jewellery offered as security. The Branch Manager/Officer
23 5
11
shall satisfy herself/himself that the party pledging the jewels is the true
-20 64

owner of the jewels.

1.3 Loan against gold Jewellery/ornaments are to be granted only after getting
-01 152

jewels duly appraised by the Jewel Appraiser empanelled by the Bank.

1.4 Loan against gold Jewellery/ornaments are to be granted only by authorized
branches. At present the power to authorize branches is vested with Zonal
5

Managers.
2. PURPOSES AND ELIGIBILITY:
2.1 Advance be granted against the security of gold Jewellery/ ornaments for
personal needs and for non-agricultural purposes only (meeting medical,
10

educational, marriage expenses and other unforeseen expenses etc.).

There is a separate gold loan scheme for agricultural purpose gold loan.
Loan is not to be granted for any speculative purposes. Purpose &
genuineness of the advance be ascertained before sanction of loan.
2.2 Gold loans are to be granted only against gold ornaments/Jewellery and
No loan to be sanctioned against bullion, primary/smuggled gold
and gold coins. In case of ornaments with jewel fittings, infilling, net
weight as certified by assessor shall be considered for determination of
quantum of loan.

3. QUANTUM OF LOAN:

For purposes excluding Agriculture & speculative purposes

Page 18 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE

Min. Amount of Loan – Rs. 0.25 lakh

Max. Amount of Loan - Rs.25.00 lakh

4. SECURITY: Pledge of Gold Jewellery / ornaments.

No loan to be sanctioned against bullion, primary/smuggled gold and
gold coins. In case of ornaments with jewel fittings, infilling, net weight as
certified by assessor shall be considered for determination of quantum of loan.

5. NATURE OF FACILITY: Demand Loan / Overdraft.

5.1 Demand loan – Bullet repayment
A variant of gold loan where repayment of loan is permitted by way of bullet
repayment at the end of the term i.e., there is no requirement to service the

:53
interest or instalment during the loan term.

Type of Loan: - Demand Loan

23 5
11
-20 64

MARGIN – 30%
-01 152

Repayment period: - Maximum: 12 months (Loan can be sanctioned for

shorter period also depending upon the need of the customer)

Repayment Mode: Bullet Repayment of Interest and Principal at the end of the
5

term. Interest will be charged to the account at monthly rests but will become
due for payment along with principal only on maturity.

Pre-payment Charges: Nil

10

5.2 Demand Loan - EMI BASED

A traditional variant of Gold Loan with repayment Facility in 36 Months

Type of Loan: - Demand Loan

MARGIN: - 25%

Repayment Period: Maximum: 36 months

Repayment Mode: The repayment of EMI should commence from next

month following the month of disbursement.
Pre-payment Charges: Nil

Page 19 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE

5.3 Overdraft: -
➢ The overdraft facility will be sanctioned for a period of 12 months only
subject to annual review
➢ Interest debited in the account on monthly basis to be recovered from
the customer.
➢ Margin – 25%

6. REPAYMENT CAPACITY:

The borrower must be having regular source of Income to service the

interest/EMI in the account.

:53
7. VALUATION:

Rates for 22 carat gold for the purpose of financing to be advised by RAD HO
23 5
11
at prescribed intervals (presently on monthly basis). In case of Gold with purity
-20 64

less than 22 carat is accepted as security, the value be converted

proportionately into 22 carat for financing under the Scheme.
-01 152

8. LOAN TO VALUE (LTV): -

➢ Demand Loan – Bullet repayment
LTV of 70% to be maintained at the time of sanction
5

➢ Demand LOAN - EMI BASED

LTV of 75% to be maintained at the time of sanction

➢ Overdraft
10

LTV of 75% to be maintained at the time of sanction

Additional Guidelines: -
➢ The LTV of 75% must be maintained throughout the tenor of the loan.
Even in case of Demand Loan – Bullet repayment the LTV should not
exceed 75% at any point of time.
➢ The LTV Ratio is to be computed against total outstanding in the
account including accrued interest.
➢ The LTV Ratio must be computed against the current value of Gold.
➢ The margin requirement would have to be re-worked whenever there is
an increase in interest rates and also when the market value of gold
decreases.

Page 20 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Since the above two conditions i.e., upward movement of Rate of Interest and
downward movement in price of gold can happen any time, the Branches have
to be meticulous in sending the Notices to the borrowers in case the LTV goes
above 75%. The notices for maintenance of margin of 25% are required to be
sent on the periodicity as mentioned below: -
a) On the day when LTV is above 75%, 1st Notice is to be sent.
b) If the above position continues then 2nd Notice is to be sent after
15 days from 1st Notice.
c) If still the above position continues then 3rd Notice is to be sent
after 30 days from 1st Notice.
d) In case the borrower fails to replenish the margin even after 3rd

:53
notice the Branches will be required to auction the gold ornaments
as per extant instructions of auctioning of Gold Ornaments. This is
mandatory irrespective of the IRAC status of the account.
23 5
11
-20 64

To Monitor LTV on regular basis by Zonal Offices, Circle Offices and Branches a report
has been customized in EDW path of which is as under: -
-01 152

EDW-PNB 2.0 REPORTS-RAD-RAD 029-GOLD LOAN ACCOUNTS WITH LTV

ABOVE 75%
5

9. DISBURSEMENT:

i. The disbursement of the Demand loan should be by way of credit in the Saving
Bank/Current account of the borrower maintained with us or any other bank.
10

ii. Loans under the scheme are to be sanctioned as per delegated power chart
and are exempted from application of PNB Score.

10. LOANING POWER: -

GBB Heads in Scale I/II/III/IV will exercise loaning power for advance against
gold Jewellery up to Rs.10.00 lac irrespective of aggregate commitment per
borrower. However, total loan sanctioned under this scheme per borrower by
GBBs will not exceed Rs.10.00 lac. Loans above Rs.10.00 lac or where
aggregate of gold loan sanctioned per individual exceed Rs.10.00 lac, such
loan will be sanctioned by segment head of PLP irrespective of aggregate
commitment per borrower.

Page 21 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
11. RATE OF INTEREST: -
To be circulated by RAD HO after getting approval by ALCO. Presently the
Rate of interest on Gold loan is as follows: -

Sr. Name of Scheme Scheme Existing ROI Interest Table

Code code
1 Advance against gold DLPGL RLLR+BSP RG016
Jewellery/Ornaments
(Demand Loan)
2 Advance against gold ODPGL RLLR+BSP RG019
Jewellery/Ornaments
(Overdraft)

:53
12. REPAYMENT:

Gold loans to be sanctioned keeping in view the repaying capacity (interest and
23 5
11
principal) of the borrower as per the following:
-20 64

The loan to be repaid by any of the following option:

-01 152

i. OD facility to be renewed every year

ii. Regular servicing of interest as and when levied in case of Demand Loan
– EMI based and Overdraft Account
5

iii. Repayment through Bullet Payment i.e. payment of interest and principal
at maturity max. up to 12 months

13. SERVICE CHARGES: -

10

13.1 Processing fee/Upfront Fee & Documentation Charge: -

0.30% of loan amount + GST or Rs. 500 + applicable Tax, whichever is higher.

Processing Fees/ Upfront Fees and Documentation Charges to be collected

upfront and to be credited in Revenue Sub-Head “<sol id>2032504”.

Note: - No charge to be levied for advance to staff member

13.2 Other Charges: -

13.2.1 Valuation Charges (Appraisal charges): -

Page 22 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Applicable Gold Appraiser Fee should be borne by the customer and charges.
The valuer will be paid Rs3/- per thousand with maximum Rs.500/-. Appraiser
fee shall be recovered from the borrower upfront and paid into her/his account.
It shall not be paid in cash. However, Circle Head is empowered to increase the
max. limit of appraiser fee up to Rs.700/- on case to case basis.
13.2.2 Re-appraisal Charges: -
The appraiser will be paid Rs.15/- per pouch at the time of revaluation of
Jewellery.
13.2.2. Safe keeping charges: -
Rs. 100/- per month or part thereof to be charged and to be recovered after the
expiry of the prescribed tenure of gold Loan for every type of loan facility
(Currently 12/36 months respectively) as Safe Keeping charges after closure of
loan facility.

:53
14. STATUS CUM NETWORTH REPORT:
23 5
11
As per IRMD guidelines issued from time to time.
-20 64

15. DOCUMENTATION:
-01 152

Demand Loan EMI Based & Bullet Repayment: -

• Application cum Letter of Undertaking (Annexure- A) (not to be stamped)
along with Two copies of recent passport size photo.
5

• KYC documents of the applicant (OVD)

• Memorandum of Deposit of gold jewellery (Annexure – B) (Two copies),
One to be handed over to the customer.
• Legal heir information (as per IRMD L&A cir. No.206/2021)
10

Overdraft against Gold: -

• Application cum Letter of Undertaking (Annexure –A) (to be stamped as
per relevant State Law) along with two copies of recent passport size
photo.
• Master Agreement (PNB-2057)
• Memorandum of Deposit of gold jewellery (Annexure – B) (Two copies),
One to be handed over to the customer.
• Legal heir information (as per IRMD L&A cir. No.206/2021).

16. RECOVERY OF PRINCIPAL AND INTEREST: -

For recovery/ repayment of Interest/ principal, Incumbents are advised as under:

-

Page 23 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE

➢ Operative Account of the customer to be captured in CBS invariably where

customer is maintaining account with our bank.
➢ In case customer is maintaining account with other banks, recovery/ repayment
of Interest/ principal be considered only through NACH/ECS/ RECS (Debit)
mandate of the customers for debiting their accounts.

Note:
Detailed guidelines on National Automated Clearing (NACH) have been issued
by Digital Banking Division from time to time

17. INSURANCE:

:53
Banker's Indemnity Policy taken by Retail Assets Division, HO covers loss/
damage to Jewellery, pledged with the Bank.
23 5
18. EMPANELEMT OF SHROFF: -
11
-20 64

(i) Ascertaining the genuineness of the gold jewellery is of primary

-01 152

importance to ensure asset quality of the portfolio.

(ii) For this purpose, Bank uses the service of appraiser/Shroff who are well
experienced in this field.
(iii) The shroff should be those approved by the Government. However,
5

wherever either the Govt. approved shroff are not available or are
available in less numbers, Circle Heads, to approve Shroff based on BM
opinion report, Scoring Model, their market reputation/standing in their
business line for the branches under their Circle,”. Minimum score
10

requirement for approval by Circle Head is fixed at 45. Application

for empanelment, BM Opinion report and Score sheet is provided
under Annexure - I
(iv) Following criteria be considered by Circle Heads while approving Shroff:
(a) Education qualification of minimum 8th Pass.
(b) Appraiser should be in the Age group of 30-65 years
(c) Appraiser should have minimum experience of 3 years.
(d) Police verification report to be submitted by the Shroff
(e) Satisfactory Market report of the Shroff
(f) Empanelment of appraiser will be valid for a period of 3 years. The
empanelment will be extended for another period of 3 years by Circle
Head on the recommendation of Branch Head.
(g) Each branch to have minimum two empanelled appraisers

Page 24 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
(h) Circle Head to review the performance of empanelled appraiser at
the end of each financial year as on 31st March and fresh list of
appraisers should be circulated to branches for the period of 12
months from 01st May to 30th April every year
(i) There will be lay off period of 6 months after satisfactory performance
of Jewel Appraiser for 6 years. However, the period will be extended
for 3 years after completion of 3 years by CH provided performance
of jewel appraiser is satisfactory at branch level which is to be duly
certified by Branch-In-Charge
(j) Circle Heads to ensure that while selecting the valuer/ shroff for
branches under their control, preference be given to valuers who are
already empanelled with other banks.
(k) In case any appraiser found to be fraudulent, he/she should be

:53
delisted and the information to be shared with all branches within
zone and the concerned Zone will ensure sharing details of fraud with
other bank through FRMD HO New Delhi.
23 5
11
-20 64

19. Valuation by appraiser/Shroff: -

-01 152

(B) The purity of Gold should be independently determined by the Valuer/Shroff

by using any of the first three methods based on the nature of ornaments
and satisfaction of the branch Officials.
(iv) Touch stone method
5

(v) Nitric acid test

(vi) Specific gravity test

Services of empaneled Gold appraiser(s) should be utilized to verify the

10

genuineness of the gold ornaments in the presence of the designated staff at

the cost of the borrower. Gold appraiser(s) should submit a certificate of purity
and mass of gold on the prescribed proforma.

(iv) Touch stone Method

Under this method, Impressions visible due to rubbing of gold ornaments with
touchstone are compared with the standard gold impressions

(v) Nitric Acid Test

This test is based on fact that purer the gold, the stronger the acid required to
dissolve it. While applying strong acids like Nitric acid to pure gold, Impressions
are not observed. Similarly, after rubbing the gold ornament to touchstone, few
drops should be applied on it and reaction to be observed. A hard-cupric

Page 25 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
reaction with more fumes indicates lots of copper, mild cupric reaction with mild
fumes indicates ornament could be low karat gold. No cupric reaction with
smear nature remaining unaltered, ornament should be of pure gold.

(vi) Specific Gravity Test

Ornaments made from Solid Original Gold with no extraneous matter, such as
precious or semi-precious stones, etc. is to be tested by this method. Following
steps should be followed: -
(c) Weigh the ornament in air (say weight is X),
(d) Weigh the ornament in water (say weight is Y)
(c) Apply the following formulae: (Specific gravity of 24 carat gold is 19.3)
19.3 = X / (X-Y)

:53
Y = X (19.3 -1) / (19.3)
If ornaments are not made of solid gold but contain silver or some base metal,
the weight in water (Y) will be less than the result indicated above
23 5
11
-20 64

(C) For weighing, appraisal and certification, Gold Jewellery accepted as security
for gold loan is to be handed over to appraiser in the presence of
Manager/Officer by the borrower
-01 152

(D) The appraisal should be done at the branch itself in the presence of the
borrower and officer of the Bank. In no case, Gold Jewellery should be taken to
5

Appraisers residence/business place.

(E) The appraisal work is to be monitored/ captured under CCTV Camera with
complete view of appraising in process. CCTV recording of 180 days to be
stored in DVR in Branch Manager Cabin. CCTV recordings is to be checked by
10

Branch head periodically as per extant security guidelines.

(F) The Shroff/ Appraiser should undergo specific tests to check the purity of gold
ornaments provided as security and proper recording of market value of
different items in schedule of Application form to be carried along with his
signature. Jewellery to be tested and approved by Shroff after determining
correct weight, purity content and assessing value based on marked value

(G) After appraisal of Jewellery by Appraiser/Shroff, it should not be parted with. If

in case Jewellery is to be handed over to customer for any valid reason, re-
appraisal should be carried before granting advance and charges of same are
to be borne by customer.

Page 26 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
(H) Caution is to be observed that Gold coating on brass/copper or any other base
metal spoofed as solid original gold is provided as security and must not be
accepted.

(I) For carrying out appraisal of security of gold, Branches authorized will arrange
for all tools / materials, (weighing machine and other material used to ascertain
purity of gold) as may be required for extending Gold loan

(J) Shroff must account for deduction towards wax, thread, and stone as assessed
by him. The following table illustrates this point: -

Other than Out of gross weight of gold ornament, weight towards stone, wax,
Hallmarked thread, impurities etc. will be deducted as per finding of the

:53
Jewellery valuer/Shroff on case to case basis. One such example is reproduced
below: -
I Gross weight 50 Gram
23 5
11
II Less: Deduction towards Wax, 04 Gram (indicative)
-20 64

thread and stone etc. (Actual to be

assessed by appraiser)
-01 152

III Net Weight (I-II) 46 gm

IV Purity of Gold 21 carat (say)
V Net weight (as per 22 carat purity) (46/22) *21=43 gm
(decimal part if any to be
5

ignored)
V Assessed Value Net weight X Advance
{Net weight (22 carat) X Rate Rate i.e. 43-gram x Rate
advised by RAD HO} as prescribed by the
10

Division on monthly
basis.
Assessed value be correctly arrived at as indicted above, to avoid
over financing.
Hallmarked Deduction towards stone, wax, thread etc. is sufficient and further
Jewels deduction towards impurities need not be made.

(K) For sanction of advance against gold Jewellery above limit of Rs.5.00 Lac,
valuation of security and appraisal of gold to be carried out by two
empaneled appraisers and the lower of the two to be considered for
finance.

Page 27 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
20. PHOTOGRAPH OF THE JEWELLERY: -

If the Jewellery tendered by the customer is found to be acceptable for granting

loan, then color photograph of all the gold Jewellery to be pledged should be
taken. In case color printer is not available, then clear black and white photo
must be held on record. Photograph to be taken in such a manner that all the
gold ornaments must be clearly identifiable separately. Two printout of the
photograph should be taken. Following details should be clearly mentioned
overleaf of the photographs: -
➢ Name of the customer
➢ Account No.
➢ Loan Amount
➢ Date of Sanction

:53
➢ Weight & Purity of the Jewellery/Ornaments
The details so written must be signed by the branch Official and customer. One
Photograph to be handed over to the customer and other photo to be kept with
23 5
the loan documents.
11
-20 64

21. USE OF KARATOMETER: -

-01 152

Zonal Managers may be empowered to permit the installation of Karatometer

in selected branches based on the volume of business and no. of loan
sanctioned in the branch. Karatometer should be used in addition to the testing
5

method adopted by Shroff and not as a substitute of traditional method of

testing. AMC of Karatometer should be in force.

22. SAFE CUSTODY OF SECURITY:

10

i. Guidelines on keeping of gold as mentioned in Physical Security Policy of the

Bank circulated vide Security Division Circular No: 03/2021 dated 27.04.2021
mentions that “Gold and Lockers shall not be kept in branches not having
proper strong room. Gold irrespective of value shall be kept in tailor made
lockers of reputed brand. Lockers shall never be kept outside the strong room.

ii. Branches authorized for extending jewel loan shall arrange for separate safe
and the gold pledged with the branch as security are to be kept under joint
custody of two officials in the strong room.

Page 28 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
iii. Jewellery along-with a list of articles relating to each loan is to be kept in a
separate pouch or cloth bag. The pouch is to be securely sealed with the
metallic insignia supplied to the respective Branch.

iv. A ticket should be prepared in duplicate furnishing the particulars such as

Account Number, Name of the Account, No. of articles and gross weight etc.
with the signature of the custodian/In charge. One ticket is to be securely
fastened with the pouch/bag and other should be kept inside the pouch/bag, so
that if in any case the outside ticket gets detached for any reason, the jewels
can be identified. The specimen of the ticket is as follows: -

:53
BO: _________
23 5
Name
11
of the
-20 64

borrower
Loan A/c No.
Loan amount
-01 152

Date of loan
Weight of Gold
pledged
5

(Signature of joint custodians)

v. The detail of items of Jewellery should be recorded in the Jewellery register

PNB-313 in accordance with the entries made in the schedule of Application
10

cum Letter of Pledge (Annexure –A). Borrower should sign in the appropriate
column in Jewellery register to confirm the correctness of the detail. The above
register should also be signed by the custodian, who should ensure that the
Jewellery is placed in the separate fire proof jewel safe kept in the strong room
in joint custody of two official.

vi. On repayment of loan, ornaments held as security should be returned to the

borrower and receipt / acknowledgement obtained in the Jewellery register. The
delivery of Gold to the illiterate person at the time of closure of loan should be
done in the presence of two independent witnesses acceptable to the Bank.

vii. In case of the death of the borrower, the matter be dealt as per extant claim
guidelines of the bank.
Page 29 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE

viii. The receipt should state that the ornaments returned are complete and are in
order. Part delivery of ornaments may be given against part payment of loan,
but care must be taken that the remaining ornaments in the bank's possession
fully cover the balance of loan outstanding including margin to be maintained.
However, in such case, borrower’s receipt for each article delivered should be
obtained against the relative entry in the appropriate column of Jewellery
register (PNB-313)

23. PHYSICAL VERIFICATION OF SECURITY:

Guidelines on monthly physical verification of Gold Packets has been

introduced vide Inspection and Audit Division Circular No: 05/2020 dated

:53
15.02.2020, following procedure is to be followed:

i. Necessary amendment in HCLM menu has been done to feed details of

23 5
11
collateral type “J” – Gold / Jewelry. A report has also been customized in EDW
-20 64

for Branches to know the number of advances outstanding on a specific date

against Gold/ Jewelry at below mentioned path: PNBEDW > IAD >DAILY >
-01 152

IADD120: ADVANCE SANCTIONED AGAINST SECURITY OF GOLD.

ii. Branches should check number of physical Gold Packets and tally with report
available in EDW as on 1st of the month and a certificate to this effect to be
5

submitted to Circle Office. Besides monthly checking of Gold packets by Branch

Officials, Quarterly checking of gold loan packets sanctioned during previous
quarter to be undertaken by bank official deputed by Circle Office.
10

iii. The Incumbent of the branch, through an office order, shall get the stock of all
security form and Gold packets checked from an officer other than the
custodian of Security Form and Gold packets in the presence of one of the
custodians.

iv. Checking of Gold Packets held as security against various types of advances
shall be checked after generating report from the EDW as mentioned above.
The checking official, as well as the custodian in whose presence verification is
carried out, shall sign in full with date at the end of each page of the Report.

v. Besides monthly verification of gold packets by Branch officials, quarterly

verification of gold packets is to be done by another official deputed by Circle

Page 30 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Office for this specific purpose. Zonal office to monitor that quarterly checking
has been done in all gold business authorized branches in the zone.

24. RE-APPRAISAL OF GOLD JEWELLERY KEPT AS SECURITY DURING

ANNUAL/REGULAR INSPECTION

Following Gold Loan Accounts are to be re-appraised during annual/regular

inspection of the branch.
a) Branches where annual/regular inspection is being conducted within 12
months, 10% of the regular jewel loans and all jewel loans classified as
NPA on the date of regular/annual inspection
b) Branches where regular inspection is being conducted in 12-18 months,
15% of the regular jewel loans and all jewel loans classified as NPA on

:53
the date of regular inspection.

Such reappraisal to be done by an appraiser other than the appraiser who has
23 5
11
appraised the Jewellery/Ornaments at the time of sanction. Further the
-20 64

standard gold loan accounts should be selected in such a way that no single
standard gold loan account should appear again in the sample selected for
-01 152

subsequent year. If any spurious gold is found in any packet the entire security
of gold loan portfolio will be subject to re appraisal. It is further added that the
reappraisal shall be done in presence of borrower, branch official (Incumbent/
Officer In charge) and an independent person (preferably a legal counsellor).
5

However, if the borrower does not turn up despite giving Registered notice then
packet may be opened in the presence of independent person (other than Bank
official & preferably legal counsellor) and whole process be recorded under
CCTV. The same shall be part of sanction.
10

25. SALE OF SECURITY:

The procedure for auction of gold loans is as under:
(o) If loan is due and repayment has not been made by the borrower, the Bank
has the right to sell the gold ornaments pledged, after giving reasonable
notice to borrowers (Section 176 of the Indian Contract Act)
(p) A notice for 15 days as per Annexure-C is to be sent to the borrower
immediately after classification of the account as NPA.
(q) A final notice as per Annexure-D must be sent by ‘Registered Post’ with
acknowledgement due to the borrower or if he is dead then to all the likely
claimants at the last known address calling up the loan and stating, inter
alia, that the relative ornaments will be sold by public auction without further

Page 31 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
reference if the loan account is not closed within 15 days from the date of
the notice. The date of the proposed auction should be stated in the notice.
(r) If the registered letter being refused, it must be kept unopened preferably
on a separate file after making appropriate remark in the Jewellery register
(PNB-313).
(s) The branch should advise the borrower or his legal claimants, if he is dead,
that in the event of a forced sale, if it is not possible to recover the amount
outstanding in the loan account plus interest plus other charges incurred for
auctioning of gold, then Bank will initiate legal recourse against them for
recovery of remaining amount.
(t) Before putting gold ornaments on auction, Gold appraiser other than
original appraiser will examine the gold ornaments and valuation of each
ornament will be recorded.

:53
(u) The proposed auction and auction dates should be publicized in print
media/digital media/local publicity prior to the date of auction. (All charges
to be equally debited to all the defaulting borrowers account.)
23 5
11
(v) The auction should be held at the Bank’s premises.
-20 64

(w) A reasonable minimum price must be fixed for each ornament depending
on the valuer’s report and the current market price and the bidding must
-01 152

start form this amount. Every effort should be made to realize the full market
value of the security pledged.
(x) Each item of the ornaments must be auctioned separately during auction,
the auction shall be stopped when the total amount realized is sufficient to
5

cover the outstanding plus interest in full.

(y) After closing the loan account with the auction proceedings, surplus
amount, if any left, will be credited to saving/current account of customer
maintained with us/DD in name of borrower should be prepared and handed
10

over. If case arises that borrower is not alive, DD should be held in safe
custody and disposal of claim in favor of legal representatives will be made
as per Bank’s extant claim disposal guidelines. The unsold items of the gold
ornaments, if any, must be held as Safe Deposit article in the joint custody
of the Branch Manager / Accountant and Loan Officer/ Loan in Charge and
must be handed over to the borrower or legal representative if borrower is
not alive, by following Bank’s extant claim disposal guidelines.
(z) Bank is required to pay GST on sale of auctioned gold. The present rate of
GST on gold is 3%. The guidelines regarding operational part has been
issued by Finance Division Cir. No.21/2022 dated 08/07/2022.
(aa) Minutes of the conduct of the sale (noting presence/absence of
borrower) should be prepared in duplicate providing details of sale of gold
ornaments through Auction, highest bidder name, realized amount and way

Page 32 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
of disposal and to be witnessed by as many as independent persons
present at auction. A copy of same should be forwarded to Circle Office for
information. A certificate of sale to be issued to the highest bidder.
(bb) A receipt from highest bidder of gold ornaments sold at auction shall be
obtained on Jewellery Register (PNB-313) along with a separate sheet of
paper and preserved along with other documents of account.

26. SCHEME CODE: -

DEMAND LOAN DLPGL

OVERDRAFT ODPGL

:53
27. PROCESSING OF DEMAND LOAN/OVERDRAFT: -

Processing of Demand Loan/Overdraft is to be done through PNB LENS.

23 5
11
The Process flow of LENS is attached as Annexure – E.
-20 64

28. GOLD RETENTION LIMIT: -

-01 152

Gold retention limit of each authorized branch will be decided by the Zonal
Manager keeping in view the business potential and other infrastructure
available in the branch. The retention limit will be fixed on the basis of value of
security In case of branch reaching 90% of gold retention limit, the checking of
5

gold packets sanctioned during the year must be got conducted by an auditor
deputed by Zonal Audit Office on the recommendation of Zonal Manager.

29. Precautions
10

i. No loan to be sanctioned against bullion, primary/ smuggled gold, Gold

Coins and Sikh Bangles/ Kada.
ii. Silver and Diamond Jewellery not acceptable.
iii. However, if a person tenders gold ornaments with names inscribed of person
other than applicant(s), then discrete enquiries must be made about the
applicant before accepting such Jewellery/ornaments
iv. Ornaments which are “stridhan” are acceptable only when the female owner is
co-borrowers. However, loan may be extended in single name, i.e., in the name
of husband if a NOC from wife of the borrower in favour of Bank that she will
not make any claim on the said gold items being her ‘stridhan’ or any ground.
v. There should not be more than 5 loan accounts to a single borrower
provided the total of all the loans sanctioned to an individual at any point

Page 33 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
of time does not exceed Rs.25 lakh to avoid utilizing bank’s fund for
speculative purpose.
vi. If a Shroff approaches for advance for himself/for his family members/person
introduced by him or/ and his family members and person introduced by him
approaches for advance, then appraisal should be conducted by other
empaneled Shroff.
vii. Reappraisal of Jewellery while re-pledge/renewal to be done in those cases
where the same has not been covered in random checking as per extant
guidelines and where security have changed hands before re-pledge.
viii. In case of NPA under advance against gold Jewellery/sovereign gold bond,
branches should ensure that the whole exercise of liquidity of security and
appropriation in NPA accounts be got completed within a period of 45-60 days.
ix. Fresh KYC of borrower be invariably taken before processing of loan and the

:53
same to be fed/updated in the SF/CA account of the proposed borrower and
thereafter loan processing should start.
x. Two copies of photographs should be obtained from illiterate borrower, if not
23 5
obtained earlier.
11
-20 64
-01 152
5
10

Page 34 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Annexure-II
ADVANCE AGAINST SOVEREIGN GOLD BONDS

Parameters Description
Eligibility i. A person resident of India, being an individual in his
capacity as individual or on behalf of minor child, or jointly
with another individual.
ii. Trust, HUF, Charitable Institutions and University.
Nature of facility i. Demand Loan
ii. Overdraft
Quantum of loan Minimum – Rs. 50000/-
Maximum – Need based
Repayment Period Till the date of maturity i.e. Maximum 8 years or residual

:53
period of the Gold Bond whichever is earlier.
Margin Individuals – 25%
Other than individuals – 40%
23 5
Security
11
Pledge/Lien on Sovereign Gold bond in favour of the bank.
-20 64

Loans will be available against Sovereign Gold

Bonds held in Dematerialized form only.
-01 152

Disbursement In case of demand loan, the disbursement of the loan

should be by way of credit in the operative account of the
borrower with the bank.
Rate of Interest As circulated by RAD HO after getting approval by ALCO.
5

At present the Rate of interest is as under: -

Sr Scheme Rate of interest Table Code
Code
1 DLSGB RLLR+BSP RG017
10

2 ODSGB RLLR+BSP RG018

Upfront Fee and

Documentation NIL
Charges
Loaning Power All Branches are authorized to sanction loan against SGB.
The loaning power at various level is as follows: -(Rs. In lac)
GBB PLP CHCAC ZOCAC HOCAC-1
Head (Segment
Head)
10.00 25.00 200.00 500.00 Full power

Page 35 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
Parameters Description
Scheme Code Demand Loan – DLSGB
Overdraft – ODSGB
Documentation Demand Loan:
7. Loan application (Annexure - K) {PNB 2024 (R)}
8. Demand Pronote – PNB 728 (Stamped)
9. Pledge/Hypothecation Form (Annexure - L) (PNB
2056)
10. Investor request for lien Marking (PNBSGB – I) (PNB
2027)
11. Undertaking - loans availed of by the applicant
(PNBSGB - IV) (PNB 2030)
12. Consent Letter (PNBSGB – V) (PNB 2031)

:53
13. Account Opening form of SB/CA a/c in case no
account maintained with us.
Overdraft:
23 5
11
9. Loan application (Annexure - K) {PNB 2024 (R)}
-20 64

10. Overdraft Agreement – (Annexure – M) (PNB 2025)

11. Pledge/Hypothecation Form (Annexure - L) (PNB
-01 152

2056)
12. Investor request for lien Marking (PNBSGB – I)
(PNB 2027)
13. Undertaking - loans availed of by the applicant
5

(PNBSGB - IV) (PNB 2030)

14. Consent Letter (PNBSGB – V) (PNB 2031)
15. Account Opening form of CA/OD a/c
10

General Instruction

1. It must be ensured that pledge/lien on bond is marked in the favour of the bank,
with the depository and confirmation held on record.

2. The SGBs should be held in demat form in demat account with any Depository
Participant

3. In case of advances against Sovereign Gold Bond standing in the name of

minor, the procedure as laid down for Advances Against Bank's Own Deposits
must be followed.

Page 36 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 पांज ब नैशनल बैंक
रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
PUNJAB NATIONAL BANK
RETAIL ASSETS DIVISION, HEAD OFFICE
4. Sovereign Gold Bonds are issued in the form of Government of India Stock and
hence advance against Sovereign Gold Bond has been exempted from Credit
Risk rating & extraction of Credit Information Report (CIR) from Credit
Information Companies (CIC).

5. Interest will be charged on monthly basis and will be serviced as and when
levied.

6. Branches to monitor the loan account periodically and ensure the adequacy of
margin on case-to-case basis so that at no time the amount outstanding in the
loan account along with the unrecovered interest accrued/debited exceeds the
value of security. Loan to Value ratio (75%) will be calculated and maintained
on monthly basis based on the Gold rate published by Retail Banking Division.

:53
In case of any shortage, the borrower should be asked to deposit the same
immediately. If the borrower fails to deposit the amount with a month time, then
steps be taken to sell the SGB.
23 5
11
-20 64

7. In case the account becomes NPA, the Branch will invoke the lien/pledge and
should take steps to sell the SGB if lock in period of five years is not over. In
-01 152

case lock in period of five years is over, then steps be taken to redeem the
SGB.

Check points to be looked into by the Inspecting Officials:

5

I. Eligibility for availing loan is as per the guidelines.

II. The SGBs should be held in demat form Depository
III. Quantum of loan is arrived at after applying the prescribed margin.
10

IV. Pledge/Lien in the favour of the bank on SGB is marked with the Depository
and confirmation held on record.
V. LTV of 75% is maintained throughout the tenor of loan. The LTV is to be
calculated and maintained on monthly basis based on the Gold rate published
by Retail Banking Division.
VI. Document as per the guidelines obtained.
VII. Rate of interest is charged as per the guidelines.
VIII. Ensure that, in case of advance against Sovereign Gold Bond standing in the
name of minor, the procedure as laid down for Advances Against Bank's Own
Deposits is followed.
IX. Third party loan not allowed

Page 37 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 रिटे ल आस्तिय ां प्रभ ग, प्रध न क य ालय
प्ल ट सां .4, सेक्टि 10, द्व िक , नई दिल्ली - 110075
RETAIL ASSETS DIVISION HEAD OFFICE
PLOT NO. 4, SECTOR - 10, DWARKA, NEW DELHI - 110075

:53
23 5
11
-20 64
-01 152
5
10

Page 38 of 38
RAD CIRCULAR No. 100/2022: PNB Gold Loan Schemes I) Scheme for advance against Gold
Jewellery/Gold Ornaments II) Scheme for advance against Sovereign Gold Bonds
“Confidential - strictly for internal circulation only”
 ANNEXURE -A

Application Cum Undertaking for Demand Loan/Overdraft against Gold

Jewellery for Non-Agriculture purpose

To:

The Branch Head

Punjab National Bank
……………………………………………….

Photo of the borrower Photo of the co- borrower Photo of co-borrower

Dear Sir,

1. “I/We Mr./Ms___________ son/daughter/wife of____________________________

Shri______________________________ ______________________________,

resident of_______________________ and

Mr./Ms___________ son/daughter/wife of

Shri______________________________ ______________________________,

resident of_______________________ and

Mr./Ms___________ son/daughter/wife of

Shri______________________________ ______________________________,

resident of_______________________

request you to grant me/us financial assistance by way of loan/Overdraft for Rs

………………. (Rupees …………………..) for personal need (for eg meeting medical,
educational, marriage expenses and other unforeseen expenses etc.) against security
of gold ornaments/articles described in the Schedule.
2. My/our Liability under other loan accounts / Gold Loan/s with another branches / other
Bank/s are as under: -
OUR BANK
Branch A/c No Limit Liability

OTHER BANKS
Bank Purpose Loan Present Overdues Security Amt. of inst.
O/s if any payable during
the year
3. I/We undertake that the funds borrowed shall be utilized for the purpose for which the
Loan / Facility has been allowed and not for any speculative or unlawful activity.
4. The said facility shall be subject to annual review, and subject to the performance,
the Bank shall have the right to either to continue the facility without change in limits
or to vary the limits, whether by way of enhancement, reduction or cancellation of
limits.

5. I/We undertake to pay interest @ --------------------------------------------% over RLLR with

a minimum of _____________________% p.a. with ---------------------------------------rests,
plus applicable interest tax, if any
6. Interest shall be paid as and when due irrespective of Instalments fixed. Interest due,
if not paid, will form part of the principal and carry interest at the above-mentioned rate.
7. In case of default in the payment of instalment or interest on the due date
and /or
In case the entire loan is recalled by the bank as herein provided

and /or
In case the account becomes irregular
(a) On account of the borrower failing to make up the margin
(b) On account of excess borrowing due to overdrawal of limit and/or drawing power
not being available
(c) For any other reason whatsoever
I/We undertakes to pay increased interest at the rate of _______% p.a. with agreed
rests over and above the agreed rate of interest as under: -
(a) On the amountin default from the date of default
(b) On the amountoutstanding from the date of demand and
(c) On the amount of excess borrowing, from the date the account becomes irregular.
Charging of additional interest shall be without prejudice to any other right available to
the Bank.
I/We further undertake to pay and bear the:
(a) Incidental charges at the rate fixed by the Bank from time to time and shall be debited
to the loan account for every half year or part thereof;
(b)Any other charges (payment of loan processing charges including gold appraising
fees) leviable from time to time as per the guidelines of the Bank and/or the guidelines
issued by the RBI.
Any interest, commission or fee accruing under this agreement will accrue from day to
day and is calculated on the basis of the actual number of days elapsed and a year of
365 (three hundred and sixty-five) days.

8. I/We hereby specifically waive serving notice by the Bank from any variation in interest
rate including enhancement from time to time as may be directed by the Head Office of
the Bank. Any public notice by bank for rate change shall be deemed notice to the
borrower.

9. As security for repayment of the outstanding balance of the loan/s which you may
grant to me/us, I/we hereby pledge with you gold Jewellery as mentioned in the
schedule herein below. I/We undertake to repay the amount outstanding in my/our
loan account/s on demand at any time and in case of failure on my/our part to repay
the loan/s and monthly /quarterly/ half yearly interest, the Bank is authorized to
dispose off the securities described in the schedule and short fall after adjustment of
the net sale proceeds shall be repaid by me/us on demand by the Bank. The balance of
sale proceeds after appropriation of my/our dues, if any, may be held by you, in our
 ...........................account with you or sent to me/us at our cost. However, you are further
entitled to hold, sell and appropriate the proceeds of this security to all or any other
liability/ies payable by me/us, in respect of any advance/financial assistance granted/to
be granted hereafter and owing and that may be owing hereafter to the Bank at any
office of the Bank or on any account whatsoever, whether solely or jointly with others
and whether as Principal debtor or surety.

10. I/We confirm that I am/we are the true owner/s of the said Jewellery and or no prior
lien or charge has been created on the gold Jewellery described in the schedule. I
am/we are aware that the Bank has right to recall the loan at any time.

11. I/We hereby admit the terms and conditions relating to this loan have been read over
and explained to me/us.

12. I am/we are personally liable to pay any ultimate balance remaining payable by me/us in
any of said accounts.

13. I/We shall keep and maintain such margin as may be fixed by bank from time to time
14. I/We further declare and agree that in the event of my/our requiring you to advance any
loan and/or financial facility/ies at any time hereafter and the Bank granting such loans
and/or facilities for which purpose this letter of pledge itself should be treated and should
serve as sufficient for that purpose. You may hold the jewels pledged and that may be
pledged hereafter as security for repayment of all or any amounts that may outstand at
any time and from time to time, apart from the personal liability created thereby until this
request is cancelled by you or returned to me/us after I/we comply with all the
requirements as agreed to with the Bank.

15. I/We specifically do empower you to sell jewels pledged for appropriation towards any
account/s due and payable by me/us or any other person/s for whom I/we stand as
guarantor/surety/co-obligant/s after giving reasonable notice of such sale of the
pledged jewels in public/private auction, as you may deem fit to realize, without
prejudice to your rights to proceed to recover the aforesaid dues, including the
shortfall after appropriation of the sale proceeds.

16. I/We agree and declare that these presents shall in no way affect your right of general
lien/set off as available to you as bankers under the provisions of law.

17. “I/We hereby undertake that the amount shall be used only for the purpose it is
sanctioned and shall not use the amount or any part thereof for any purpose other than
for which it is sanctioned .Further I/We agree that I/we are fully aware that in case of
any default of the terms contained in this agreement, despite having sufficient means to
pay the dues of the Bank, I/We shall be declared as a Willful Defaulter in terms of the
guidelines issued by RBI /Bank”.

18. I/We, understand that as a pre-condition, relating to grant of the loans/advances/other

non-fund based credit facility to me/us the PNB, require my/our consent for the
disclosure by the Bank of information and data relating to me/us, of the credit facility
availed of/to be availed, by me/us, obligation assumed/to be assumed, by me/us, in
relation thereto and default, if any, committed by me/us, in discharge thereof.

Accordingly, I/We, hereby agree and give consent for the disclosure by the Punjab
National Bank of all or any such:
(i) Information and data relating to me/us
(ii) The information or data relating to any credit facility availed of/to be availed, by
me/us, and
 (iii) Default, if any, committed by me/us, in discharge of my/our obligation.
(iv) I/We declare that the information and data furnished by me/us to the Punjab
National Bank are true and correct
I/We, Undertake that:
(i) The credit information companies (CICs) and any other agency so authorized
may use, process the said information and data disclosed by the Bank in the
manner as deemed fit by them; and
(ii) The credit information companies (CICs) and any other agency so authorized
may furnish for consideration, the processed information and data or products
thereof prepared by them, to banks/financial institutions and other credit grantors
or registered users, as may be specified by the Reserve Bank in this behalf.

Further, I/We hereby confirm that I/We shall not arise any dispute in what so ever
manner regarding information/ details furnished/to be furnished to CICs/other authorities
and same is binding to me/us. The Borrower hereby give consent to the Bank/Lender
for disclosing/submitting the ‘financial information’ as defined in section 3 (13) of the
Insolvency and Bankruptcy Code, 2016 (‘Code’ for brief) read with the relevant
Regulations/Rules framed under the code, as amended and in force from time to time
and as specified from time to time, to any ‘Information utility’ as defined in section 3 (21)
of the code, in accordance with the relevant regulations framed under the code, and
directions issued by Reserve Bank of India to the banks from time to time and hereby
specifically agree to promptly authenticate the ‘Financial information’ submitted by the
Bank/Lender, as and when requested by the concerned Information utility’

19. Whether related to Chairman/Director of our Bank/any employees of our Bank/any

other Bank. Yes/No. If Yes, furnish full details.
 SCHEDULE

Description Gross Net Rate per Appraised

of the Weight Weight gram value (By
jewellery/Ornaments Shroff)
Rs.

SIGNATURE OF THE BORROWER/S

 CERTIFICATE BY SHROFF

I hereby declare and certify that

1. The jewellery in the above-mentioned schedule has been tested by me.
2. The above written weights, rates, market rates and Gold contents are verified by me
to be correct.

Place:
Date:

SIGNATURE OF THE VALUER/SHROFF

CERTIFICATE BY 2 ND SHROFF
(APPLICABLE IN CASE OF LOAN ABOVE Rs.5.00 lac)

I hereby declare and certify that

1. The jewellery in the above mentioned schedule has been tested by me.
2. The above written weights, rates, market rates and Gold contents are verified by
me to be correct

Place:
Date:

SIGNATURE OF THE VALUER/SHROFF

 FOR BRANCH USE ONLY
Borrower(s) Profile: -

Account No. Customer ID:

Name & complete Address with Mobile no.: -

1.
2.
3.
Purpose of Loan: _____________________

Value of Security _________________ Margin: ___________________________

Permissible Loan amount (A) ____________ Requested Loan amount (B)

_____________
Sanctioned Loan Amount (Lower of A or B): ________________
(Total of existing & proposed loan does not exceed Rs.25.00 lac and not more than five
accounts are available under existing cust ID including the account proposed to be
opened)
Repayment period: _____________________________________

Loan for Rs. _____________ sanctioned to ______________ on ______________

MANAGER/SENIOR MANAGER
 Certificate of the Branch

I/We hereby certify the following:

1. The loan/OD of Rs ……….. under the scheme of loan against pledge for gold
jwellery/hypothecated goods availed by Shri. ………………..(Account No
……………………….) for …………………. (indicate purpose/s) has been made
available based on actual requirement assessed and accordingly utilized as
declared by the borrower.

2. Gold jewels accepted for this loan facility were handed over to appraiser by the
borrower in the presence of Manager/ Officer and appraisal was done by the
appraiser in the presence of borrower and officer of the bank within the branch
premises and same is captured under Surveillance of CCTV Camera.

3. We confirm that the details of the gold jewels mentioned in memoranda of jewelry
and this application cum letter of pledge are one and the same and tallies with the
physical gold jewellery kept in safe custody

4. We confirm that the appraised gold jewels were taken control by us immediately
after the appraisal and safe dual custody is ensured.

5. We confirm having entered the loan details in the pledge and jewelry register and
the register is maintained properly as per the structured format.

Officer/Loan In-Charge Branch Head

Joint Custodian – I Joint Custodian – II

Date:
 MOST IMPORTANT TERMS & CONDITIONS
Retail Banking Division (Advances)
1. Interest:
i. Interest whether floating type or fixed type will be charged in the account as per
sanction. Reset of interest will be as per stipulated in the sanction. Interest is to be
calculated on daily balance due to the Bank so long as the amount due from the
borrower is not paid in its entirety and the same will form part of the principal and
carry interest at the applicable rate at monthly rests.
ii. All floating loans/credit facilities linked with RLLR are subject to Reset clause. On
Reset date, the interest rate may change and if the same is not acceptable to the
borrower, the outstanding credit facility shall have to be adjusted in full, failing which
the bank would charge the revised interest rate from the date of reset.
iii. If the bank chooses to revise the interest rate due to the reset clause, and in case,
the borrower is not agreeable with the proposed rate fixed at the time of reset or no
consensus is arrived at mutually on rate of interest to be charged from the reset date,
pre-payment option may be exercised by the borrower for discontinuation of the loan.
In such an eventuality, no pre-payment penalty will be levied which will provide a
comfort to the good corporate borrowers. However, a reasonable time of not more
than one month shall be given to the borrower to make arrangement for repaying the
bank’s loan. After expiry of the stipulated period, the interest rate as fixed by the bank
shall be charged.
iv. The bank will make efforts to keep its borrowers’ informed of any change in interest
rates through the official website (www.pnbindia.in) , annual statement of accounts,
display in its offices and general announcements from time to time.
2. Penal Interest:
Penal Interest @2% will be levied in the account in case of:
i. Non-payment of any installment of principal and/or interest, costs and other charges
due, on the amount in default from the date of default; or
ii. Any irregularity in the Loan account; or
iii. Default in Furnishing information as prescribed/called for by the Bank; or
iv. Diversion or siphoning of the Loan amount; or
v. Default in creation of security within the stipulated time; or
vi. Non-compliance of any of the terms & conditions of this Agreement; or
vii. Any other case as the Bank may deem fit.
3. Margin/ Promoter’s contribution:
The applicant should bring in their entire contribution before release of the Loan or in the
manner otherwise provided in the sanction. Further, it should also be ensured that margin
stipulated is maintained / provided at each stage of disbursement.
4. Fee & other Charges: Fees and other charges as applicable on application/ during
the currency of the loan/ conversion charges for switching
i. All service charges viz. Upfront Fees/ processing Fees, Documentation Charges,
Inspection charges etc. Will be charged from the applicant as per sanction before release
of credit facilities.
ii. All other event based charges like legal fees, charges for dishonour of cheques/ NACH
mandate/ standing instructions, charges for drawing of Credit Information Report from
Credit Information Companies like CIBIL etc., registration of charge with CERSAI in case
of mortgage of property etc. will be recovered from the applicant immediately on
occurring of the event.
iii. Processing Fee paid by the Customer for availing the loan is non-refundable.

5. Repayment of loan: Loan to repaid in Equated Monthly Instalments (EMI) or as

stipulated in the sanction if otherwise.

6. Security: The loan will be secured by mortgage of/ hypothecation of/ pledge of/charge
on assets purchased through bank funds in case of primary security and/or assets in case
of collateral security, within the stipulated time period as specified in the sanction. Personal
guarantee if any, will be obtained as per sanction.
7. Insurance:
i. The borrower shall get the assets, mortgaged/ hypothecated/ charged to the bank,
insured against all risks at their own cost with usual bank clause. A copy of the insurance
policy will be kept on bank's records also.
ii. In case the same is not complied with, the bank will get the same insured and cost
recovered from the borrower.
iii. The Borrower may avail health and/or life insurance cover for himself with the Bank as
the sole beneficiary under the policy / policies.
8. Disbursement:
i. The borrower shall submit all relevant documents as mentioned in the Sanction
Letter/Loan Agreement before disbursement.
ii. The borrower will intimate the Bank of any change in his employment/contact details.
iii. The borrower will request for disbursement of the loan in writing (as per the manner
prescribed by Bank).
iv. The payments will preferably be made directly to vendor/ seller from whom the applicant
proposes to purchase the asset. Original bills/cash memos for all the assets financed by
bank/ payments made by the bank, shall be submitted by the borrower to be placed on
bank’s record.
v. In case of housing loan, the Loan will be released in stages as per physical progress of
the project. Before actually disbursing the loan, the Branch Head must satisfy that the
borrower has contributed the required margin for the loan. In case of housing loan for
construction of house, payment will preferably be made directly to the suppliers.
vi. Before disbursement of Loan, applicant to ensure that all necessary statutory and other
approvals/permissions have been obtained.
vii. Loan will be utilised strictly for the purpose as per sanction. Deviation if any, will be
treated as non-compliance.
viii. Borrower to comply with all preconditions for disbursement of the loan as mentioned in
the Sanctioned Letter.
9. Recovery of dues:
i. Customers have been explained the repayment process of the loan in respect of, tenure,
periodicity, amount and mode of repayment of the loan. No notice, reminder or intimation
is given to the customer regarding his/her obligation to pay the EMI/ Instalment regularly
on due date.
ii. On non-payment of EMI/ Instalment by the due dates, Bank shall remind the customers
by making telephone calls, sending written intimations by post and electronic medium or
by making personal visits by Bank’s authorized personnel at the addresses provided by
the customer. Costs of such calls/communication /visits shall be recovered from the
customer.
iii. Notwithstanding what is stated herein, it shall be the liability of the customer to ensure
that the EMIs/ Instalments are regularly paid on the due dates.
iv. Credit information relating to any customer's account is provided to the Credit
Information Bureau (India) Limited (CIBIL) or any other licensed bureau on a monthly
basis. To avoid any adverse impact on the credit history with CIBIL, it is advised that the
customer should ensure timely payment of the amount due on the loan amount.
v. Intimation/Reminders/Notice(s) are given to customer prior to initiating steps for recovery
of overdues.
10. Customer Service: Customer Service Queries including requirement of documents can
be addressed to the Bank through the following channels:
i. Write to the branch or contact us through toll free number 1800-180-2222 / 1800-103-
2222 / 0120-2490000 (tolled).
ii. Contact the branch within the working hours for:
a. Photo Copies of loan documents, which can be provided in 7 working days from date
of placing request. Necessary administrative fee shall be applicable.
b. Original documents namely Title Deed of Property, Registration Certificate etc. will
be returned within 10 working days from the date of closure of loan.
c. Loan Account statement (time line): Within 3 working days of the receipt of request.
8. Grievance Redressal: There can be instances where the Borrower is not satisfied with
the services provided. To highlight such instances & register a complaint the Borrower may
follow the following process:
i. Borrower can meet or write to the Branch Head of the concerned branch or
ii. The Borrower can complain to customer care through our website: www.pnbindia.in or
email at [email protected] or Mobile Application “wecare” (can be downloaded through
Google Playstore) or through Internet Banking/ Mobile Banking or
iii. In case the grievance remains unresolved beyond a period of 15 days, the borrower may
escalate the matter to Principal Nodal Officer, Punjab National Bank, Customer Care
Division, Head Office, Sector 10 Dwarka, New Delhi 110075.

**The above list is illustrative and may vary on case to case basis.

PNB 1278(R)
 Annexure – B

PUNJAB NATIONAL BANK

MEMORANDUM OF DEPOSIT OF GOLD JEWELLERY/ORNAMENTS
(To be prepared in duplicate and one copy be handed over to customer)

Gold Loan A/C No. Date:

Ledge Folio No.

The undernoted gold ornament(s) have been deposited with us as security against the loan of
Rs.____________ (Rupees_______________) advanced to Shri/Smt. _________________

Sr. Description of the Article Gross Weight (in grams) Initials

i) The period of loan is ________ months and hence to be repaid by date_____

ii) Safe keeping charges will be levied after 30 days after the expiry of the term
period which is presently ________ months.

Loan Officer/In-charge Branch Manager

Name: Name:
PF No. PF No.
 ANNEXURE –C

Letter to Defaulting Borrower

(Registered A.D.)

Letter No. __________

Date: __________
To

---------------------------------

_____________________

Dear Sir/Madam,

Gold Loan for Rs……………… DL/OD Acount no. ____________ - Irregularity in account.

This has reference to your loan account with our Bank for an amount of Rs._______________
availed by you from the Bank in captioned account.

1. As per terms and conditions of the loan, it is observed that the interest and/or Principal are not
paid to the account as promised, hence amount in loan account are overdue and account
has been classified as NPA on ________
.
2. We request you to immediately arrange to deposit a sum of Rs.______________ in the loan
account towards overdue instalments in order to regularise your loan account within 15 days
from the date of this letter.

Yours faithfully

(Branch Manager)
 Annexure – D

Final Notice to the Borrower

(Registered A.D.)

Letter No.________
Date: ___________

To

_________________

_________________

Dear Sir/Madam

Reg:- Gold Loan for Rs.___________________ DL/OD Account No.

_________________________ persistent irregularity in Account.

Further to our letter No. dated requesting you to regularize your demand loan account, weobserve
that the repayment of Interest and Principal are now overdue for months by Rs.____________.

You are requested to please regularize/close the loan account within a period of 15 days of the
receipt of this letter. We hereby give notice that if the loan account is not closed/regularized within
15 days, the ornaments held as security for the advance will be sold by public auction and you will
be liable for any shortfall that may accrue.

Yours faithfully

(Branch Manager)
 Annexure E
Process Flow of PNB LenS, the Lending Solution (Retail Module) -
PNB Education Loan & Personal Loansing of proposals of PNB Gold Loan
Page 1: Customer profile
Page 2: Loan detail and Assessment
- Loan detail
- Gold Ornaments
- Assessment Detail
Page 3: MIS Detail (Account handoff) and Documentation

STEPWISE FLOW of Processing Loans against Bank’s Deposit

Step 1:- After login to the PNBLENS, click on the Retail Module – Loan against
Bank’s own Deposit to proceed further to next screen.

Link is available as under:

HOME RETAIL LOAN AGAINST BANK’s OWN DEPOSITS/GOLD

LOAN

Step 2: - Creation of Customer profile

Click on the New button. Customer profile page will be opened.
Step 3: - Click on the New button, select Applicant type and then fetch customer id
of the borrower/co-boorwer/guarantor from the search button.
Step 4: - After entering all the relevant details User need to SAVE the page. After
saving the page, new record will be generated on the same page with application no.

1234 ABC

Step 5: - Co applicant can also be added like main applicant after selecting NEW
option on the Customer profile page and then select the relevant option from Applicant
Type. In that case one more row of co- applicant will be visible just below the main
applicant at bottom of the page.
Step 6: - Click on the Create Proposal link available at Customer Profile Page to
proceed further to loan detail assessment page.

1234 ABC

Step 7: - In this loan detail Assessment page, capture the relevant details like Purpose
of loan, Loan requested amount, Rate of Interest, Loan Tenure etc and then SAVE.

Step 8: - Enter Gold Ornament Detail under Gold Ornament TAB. Select New then
enter Article Type, Ornament Details, weight of Article. Current Value of the gold will
be auto populated by the system which will be entered by RAD HO.
Step 9: - Select Valuer Details under the TAB Gold Ornament & fill the name of valuer
& date of valuation.

ABC

ABC 1234

Step 10: - Enter the details pertaining to deviation if there is any deviation as per
Bank’s guidelines & complete the checklist by clicking Deviation & Checklist under
Assessment TAB. After saving the above details, the term deposit record will appear
below the screen.
Step 12: - At Assessment TAB this Page User to take decision i.e recommendation
and enter the remarks.

- On recommendation the Sanctioning authority of Branch will have access of the

Proposal.

Step 13: After recommendation, sanctioning authority to login to PNB LenS &
proposal can be searched via Customer ID or Proposal no at:
HOME RETAIL LOAN AGAINST BANK’s OWN DEPOSIT/GOLD
LOAN
Step 14: - After this, click on sanction button to sanction the proposal and status of
proposal will change to process/approve status from open/Pending status.

Step 15: - Take the printout of Sanction letter / Processing note and other
relevant Documents.
Step 16: Click on MIS/CBS page I/II to view the page. System will populate the default
value as per scheme code.
Branch users to check the value of all fields and then click on Edit button and save the
page. Default value is being populated to save the time of Branch users.
Step 17: Click on Account Hand Off button to send the account details to CBS
Post Account Handoff, User will create security in CBS through HCLM & HSCLM
in CBS manually and proceed for release of limit/disbursement as per Bank’s
extant guidelines.
 ANNEXURE–F

Standard Operation Procedure (SOP) –Sanction of Gold Loan

Customer visits the branch for Gold Branch will obtain complete loan
Loan application form duly filled by the
customer along with KYC Documents

Branch will carry due diligence of the Branch will obtain all the relevant
customer i.e. verification of KYC papers from the applicant including
Documents, Extraction of CIR and KYC document and give
purpose should be ascertained acknowledgement to the customer

Jewellery must be tested by and The processing is to be done by the

approved by Shroff under CCTV. Shroff Loan Processing Officer at the
should weigh, determine purity and Branch/RAM in PNB LenS as per vested
record market value for separate items loaning powers. Memoranda of
in Application cum letter of Pledge. If Jewellery to be prepared in duplicate
value of loan is above Rs.5.00 lac,
Second valuation to be obtained

Execution of Agreements/Documentation The sanctioning authority will cross

as per Bank’s extant guidelines & one copy check the processing and on finding the
of Memorada of Jewellery to be handed same in order will approve the
over to customer. Two Photo of the application, give final sanction and
jewellery be taken and details be convey to customer
mentioned overleaf under signature and
one photo be handed over to the
customer.

The disbursement of the loan should be by Safe custody of security will be as per
way of credit in the saving /Current extant guidelines of the Bank.
Account of the borrower
 ANNEXURE- G

Standard Operation Procedure (SOP) -Safe Custody of Gold Loan

Branches shall arrange for separate Jewellery along-with a list of article

safe for keeping of pledged gold relating to each loan is to be kept in
jewellery and the gold pledged with a separate pouch or cloth bag. The
the branch as security to be kept pouch is to be securely sealed with
under joint custody of two officials in the metallic insignia
the strong room
supplied to the respective Branch

Details to be recorded in PNB 313 as A ticket with A/c no, Name of

per Application cum letter of Pledge borrower, No. of Articles, Gross
with borrower sign in jewelry weight with sign of custodian to be
register. Custodian must also sign placed inside and fasten outside
the same and place the pouch in pouch/bag
strong room

During repayment of loan, ornaments

to be returned to borrower and
receive acknowledgement in
Jewellery register (PNB 313). If
borrower is illiterate, it should be in
presence of two witness
 ANNEXURE- H

Standard Operation Procedure (SOP) for Sale of Security in Gold Loan

In case the loan is not adjusted within the stipulated period or there arises a cause for sale of
security, following procedure is to be followed

A Registered notice be sent to Another notice should be issued to

borrower for adjustment of dues. borrower after 15 days

Auction to be conducted by giving

If no recovery is forthcoming,
public notice in two newspapers. Each
Jewellery to be re-appraised by
item to be individually auctioned and
another valuer/Shroff before putting
proper record of auction to be
for auction/private sale
maintained to be witnessed by
independent person

Jewellery to be handed over to highest

bidder and proper record thereof to
be maintained. Certificate of sale to be
issued to the Highest Bidder. Sale
Proceeds to be credited to loan
account and surplus if any to be
returned to the borrower.
 Annexure I

Application for Engagement of Gold Appraiser

Signed
Photograph of
the Applicant

The Manager,
Punjab National Bank
______________________Branch

I request you to engage my services for testing gross weight, net weight, purity and
genuineness of gold ornaments to be pledged for sanction of Gold Loans. My
particulars are furnished below.
Sl No Particulars Remarks
1. Name
S/O

2. Address:
Permanent

Present

Residing Since

3 Age

4 Qualification

5. Phone No:
Mobile
Landline

6. KYC
(i) PAN card/ Aadhar Card
(Any one of the above for Proof
of identity)

(ii) Passport/Aadhar/Voter I
Card
 (Any one of the above for Proof
of Address)

7 Occupation
(i) Business
(ii) Service

8 Bank A/c no
Branch having the Account

9 Relationship with PNB

10 Approx Monthly income

11 License if any available for

testing Gold Ornaments

12 Experience (in years)

13 Loans availed from PNB/ other

banks

14 Reference of 2 local persons:

Name Address and Contact
(i)

(ii)

Signature:

Name:

Address:
 BRANCH MANAGER OPINION REPORT (Input Sheet)

Sr. Particulars Remarks

1 Name

S/O
2 Age
3 Mobile No
4 Landline No
5 Family Details
6 Address:
Permanent

Present

Residing Since
7 KYC Verification

Voter Card No:

Aadhar Card No
8 Bank A/c No

Branch:
9 Relationship with Bank
10 CIC report Score

11 Qualification

12 Approx monthly Income

13 License of testing gold ornament, if any

14 Experience
15 Occupation (Goldsmith/ Jewellery shop)
16 Reference from two respectable persons 1.

2.
17 Their address and contact 1.

2.
18 Recommendations

Branch Manager
 SCORING MODEL

Sr Parameter Score
1 Resident
>10 Years 10
5 to 10 Years 06
2 to 5 Years 04
< 2 Years Reject

2 Relationship with Bank

>5 Years 10
3 to 5 Years 06
2 to 3 Years 04
<2 Years/Two reference of reputed customer 00

3 Loan availed from PNB/ other banks

CIC report score satisfactory, Account regular 10
CIC report score unsatisfactory, defaulter 00

4 Qualification
Graduate and above 05
8th pass 03
Illiterate 0

5 Experience
10 to 15 Years 20
5 to 10 Years 15
3 to 5 Years 10
Less than 3 years Reject

6 Occupation
Owner of Gold Shop 10
Working as goldsmith in Jewellery shop 08

7 Integrity
Respected and Well reputed as per enquiries made by Bank 20
Not Satisfactory 0
Minimum score for empanelment as Gold Appraiser – 45 else Reject
The scoring model will be used for empanelment and rejection of gold appraiser
 (To be stamped as General Agreement as per local State law)

ANNEXURE-J

AGREEMENT BETWEEN THE GOLD APPRAISER AND

PUNJAB NATIONAL BANK
THIS AGREEMENT made at _________this _______ day of ________ between
Punjab National Bank, a Bank constituted under the Banking Companies (Acquisition
and Transfer of) Undertaking Act,1970 having its Corporate Office at Plot no.4, Sector
10 Dwarka, New Delhi and amongst others one of its branches at_________
(hereinafter called "the Bank" which expression shall include its respective
representatives, successors, administrators and assigns) of the One part
AND
Sri/Smt.________________S/W/D of___________________about_______ years,
PAN NO.................. and residing at ................(hereinafter referred to as the "Gold
Appraiser" which term wherever the context so requires or admits shall also include
his heirs, executors, agents, administrators and assigns).
WHEREAS the Bank has agreed to engage the Appraiser for the purposes hereinafter
appearing and conditions and upon the terms and conditions hereinafter set forth.
NOW THEREFORE, it is agreed by the and between the Bank and the Gold Appraiser
as follows: -
1. This agreement will commence and come into force on and from ............. and will
continue in force until it is determined in the manner hereinafter provided.
2. Gold Appraiser is not an employee of the Bank and the rules/regulations governing
the employees of the Bank from time to time, shall not apply to him. He will be
governed solely by the terms and conditions of this agreement and of such other
contracts or agreements as may be executed between him and the Bank.
3. The Gold Appraiser is engaged for doing the work which is ordinarily or customarily
done by Gold Appraisers upon the understanding that he is or may be engaged in his
own business or trade. He shall attend to the work relating to the appraising and
certifying the weight, value, genuineness and purity of gold ornaments/gold coin/gold
jewels/any other gold articles produced to the Bank for loans/ advances at or during
such time or hours as may from time to time be fixed or determined by the Bank and
notified to him orally or in writing. The services/work as specified herein is to be carried
out by the Gold Appraiser himself and no sub-contracting is permitted.
4. The Gold Appraiser shall faithfully and diligently do or perform the work or duties
assigned to him from time to time at the _________Branch of the Bank and/or at such
other Branch or Office of the Bank as may be required by the Bank. Gold Appraiser
possesses all the statutory/regulatory licenses/permission, if any for carrying out the
work of appraising of gold.
5. In relation to his work as appraiser or assayer, the Gold Appraiser may be required
and shall be bound to follow such procedure and to complete or fill such forms or
declarations as may be prescribed by the Bank from time to time.
6. The Gold Appraiser shall be bound to observe strict secrecy and confidentiality with
regard to any and all information provided by Bank, all affairs of the Bank, all dealings
and transactions of the Bank, any information relating to the customers of the Bank,
the state of accounts of the Bank with its customers or others and all matters pertaining
thereto which may be disclosed to or come to the knowledge or possession of Gold
Appraiser in the performance of the works or services hereunder. The Gold Appraiser
shall treat any and all such information confidential and shall not disclose it except with
the prior written consent of Bank or under compulsion of law. The termination of this
agreement shall not relieve Gold Appraisers of these obligations to maintain
confidentiality with respect to such information.
7. The Gold Appraiser shall be responsible for the due safety (both within and outside
the Bank premises) of and be held accountable for and shall on demand forthwith
deliver or make satisfaction to the Bank of all ornaments, documents, letters, files,
stationery and any things and articles of any description whatever received by him (or
by any person or persons with his consent expressed or implied or at his connivance)
from the Bank or on behalf of the Bank from any customer or other persons having
business or dealings with the bank. The Gold Appraiser shall not delegate his work to
any third party.
8. The Gold Appraiser shall be liable to make good to the Bank any loss or damage
which shall or may be caused to it in consequence of any mistake, default, omission,
neglect or misconduct made or committed by him in the performance of his duties as
Gold Appraiser.
9. The Gold Appraiser undertakes at all time to indemnify and keep harmless the Bank
from all claims, damages, loss, liabilities or expenses (including but not limited to
reasonable fee and disbursement) incurred or suffered by the Bank by reason of any
act of the Gold Appraiser in the course of performance of works or services under this
agreement.
10. The Gold Appraiser shall be responsible for the genuineness of all
jewellery/articles, whether of gold or silver or other metal and of precious stones, etc.,
which are proposed to be accepted by the Bank for pledge on his appraisal and shall
be liable to make good on demand any loss which the Bank may sustain in
consequence of the erroneous or defective appraisal of the such articles.
11. In the event of any such loss arising or likely to arise, Bank shall quantify the loss
and the quantum of loss determined by Bank shall be final and conclusive against the
Gold Appraiser.
12. The Gold Appraiser shall be remunerated for his work by way of appraiser fee only
as determined by the Bank from time to time in its absolute discretion and he shall not
be entitled to any other remuneration, reimbursements and other charges whatsoever.
The Gold Appraiser shall make his own arrangement for visit to the branch.
13. The Gold Appraiser shall not have any right to retain or make any claim on the
articles that may be entrusted to him for his appraisal.
14. The Gold Appraiser shall procure and maintain all necessary licenses permissions
and/or approvals, if any required, under the applicable laws throughout the currency
of this agreement.
15. This Agreement may be terminated by either party by giving one month's notice in
writing of his or its intention to do so. The Agreement shall stand determined at the
expiration of one month from the date of receipt of notice by the other party. Bank may
terminate this Agreement forthwith by giving the Gold Appraiser written notice if there
is a material breach of the terms of this agreement by Gold Appraiser or if Bank has
reasonable grounds to believe that Gold Appraiser was negligent or committed fraud
or was dishonest in the performance of services or works under this agreement.
16. In the event of the Gold Appraiser ceasing to be the Bank's Gold Appraiser by
termination of this agreement or otherwise due to a material breach of the terms of this
agreement by Gold Appraiser or if Bank has reasonable grounds to believe that Gold
Appraiser was negligent or committed fraud or was dishonest in the performance of
services or works, the Bank. shall be entitled to get the jewels earlier appraised by the
Gold Appraiser, reappraised by any other persons and the Gold Appraiser shall pay
to the Bank, the entire cost of such reappraisal.

17. Any dispute or difference arising between the Parties out of this Agreement or any
terms and conditions of the Agreement shall be settled by mutual negotiations and the
best efforts and endeavours of the Parties hereto failing which, all disputes arising in
connection with the interpretation of the terms and conditions contained herein shall
be referred to arbitration of sole arbitrator appointed by Bank and the award made by
the Arbitrator shall be final and binding on the parties. In case there is no consensus
on the name of Arbitrator appointed by the Bank, both the parties shall have the right
to appoint one arbitrator each, and both of them will appoint third arbitrator whose
decision shall be final and binding

The arbitration proceedings shall take place in the district where branch, which has
appointed the gold appraiser, is situated. The arbitration shall be conducted in
accordance with the provisions of the Arbitration and Conciliation Act, 1996 (26 of
1996). The language of arbitration shall be English. Parties to the arbitration shall bear
their own cost. During the arbitration proceedings, Gold Appraiser shall continue to
provide the service, until and unless desired otherwise by the Bank.

The Gold Appraiser shall not be deemed to be the Agent of the Bank except in respect
of the transaction/services which give rise to Principal- Agent relationship having
regard to the nature of the transactions or by implication. Gold Appraiser shall not hold
out or represent as agent of the Bank. Nothing contained in this Agreement shall be
construed as creating any relationship of employer and employee between the Bank
and Gold Appraiser. The Gold Appraiser shall not be entitled to claim permanent
absorption in the Bank or make any other claim or benefit against the Bank.
18. NOTWITHSTANDING the termination of this Agreement, the liability of the Gold
Appraiser in respect of his acts, commission or omission during the period of
agreement, shall not cease and the Gold Appraiser shall be liable to the Bank for all
losses, expenses and charges payable in respect thereof including Court costs, etc.,
if any.
19. The Agreement shall be governed and construed in accordance with the Laws of
India.
20. Any provision of this Agreement may be amended or waived, if, and only if such
amendment or waiver is in writing and signed, in the case of an amendment by each
party, or in this case of a waiver, by the Party against whom the waiver is to be
effective.
21. Any notice, invoice, approval, advice, report or any other communication required
to be given under this Agreement shall be in writing and may be given by delivering
the same by hand or sending the same by registered mail or facsimile to the relevant
address given in this Agreement or as each Party may notify in writing to the other
Party time to time.
22. If this Agreement is signed in counterparts, each counterpart shall be deemed to
be an original.
23. In this Agreement, reference to any gender includes all other genders.
24. IN WITNESS THEREOF THE Gold Appraiser and the Bank acting through its
authorized officer has hereunto set their respective hand on the date, month and year
above mentioned
Signed and delivered by the within named

Signed and delivered by

Branch Manager.
On behalf of Punjab National Bank, _______________, Branch
 Annexure K

Loan application for advance against Sovereign Gold Bonds

Manager Date:________

_______________ Place:_________

Dear Sir,

Kindly allow me/us ___________________________________________ a Demand

Loan/Overdraft against Sovereign Gold Bonds as per the particulars given below:

Sr.No ISIN Investment Holder No. of Units Bond Value

Serial Name

TOTAL

On adjustment of your dues from the proceeds of security pledged the balance amount
be credited to My/Our Savings/ Current Account No. _________________.

I/We will abide by the Bank’s rule in force from time to time.

Name: ___________________ Yours Faithfully,

Occupation: _______________ __________________

Address: __________________ Signature

FOR BRANCH USE ONLY

No of Units
Bond Value
Margin
Eligible Loan amount
Loan amount sanctioned

Signature/(s) of the Order of the Manager

depositor/(s) and information
given are verified and found
correct

Authorised officer Sanctioned

Signature

PNB 2024 (R)

 Annexure L

<NAME OF DEPOSITORY>
<ADDRESS>
<DP ID No.>
PLEDGE/HYPOTHECATION FORM
Please tick in any one of the boxes as may be applicable
Create the Pledge/ Confirm the creation of Pledge/
Hypothecation
Hypothecation
Close the Pledge/
Hypothecation Confirm the closure of Pledge/
Invoke the
Hypothecation
Pledge/Hypothecation
Unilateral closure Pledge/ Confirm the invocation of Pledge/
Hypothecation
Hypothecation
Date Instruction Type (Pledge/ Hypothecation)
Client ID Counter party Pledgor/ Pledgee Client ID
Client Counter party Pledgor/ Pledgee Name
Name
Agreemen Counter party Pledgor/ Pledgee DP Id
t No. (as
provided
by pledge)
Closure Counter party Pledgor/ Pledgee DP Name
Date
Sr. ISIN Securit Reason Quantity Quantity Pledge Reasons of
. y Name & (in figure) (in words) order No. rejection (if
release (Refer (Refer (Refer any) (To be
date for instructio instructio instructio filled in at
locked- n No. 2) n No. 2) n No. 3) the time of
in- confirmation
securitie )
s (if any)

Execution Date:
Authorised Signatory(ies)
Instructions:
1. To be submitted in duplicate for acknowledgement.
2. Pledge Quantity, Closure Quantity or the Invoked Quantity to be mentioned as
the case be.
3. Pledge Order No. to be filled by the client (except at the time of creation of the
pledge to be filled in by the Participant).
4. Locked-in securities cannot be invoked before lock-in release date.
5. Strike out whichever is not applicable.
 APPENDIX- M

PUNJAB NATIONAL BANK

(To be stamped as an agreement not to be Attested/Witnessed)

Advance against Sovereign Gold Bonds

Over Draft Agreement

This Over Draft Agreement (“Agreement”) is made on this

____________day__________________of _____ at______________________

Between

Punjab National Bank, a body corporate constituted under the Banking Companies
(Acquisition and Transfer of Undertakings ) Act 1970, having its Head/ Corporate
Office at Plot No. 4, Sector 10, Dwarka, New Delhi and amongst others a branch at
_____________________________________(hereinafter called ‘the Bank’, which
expression shall include its assignees, administrators, executors and successors in
interest) of the first Part.

And

Mr/Ms/Mrs_____________________________________, son of/wife of/daughter

of____________________residing at ____________________________________
________________________________hereinafter referred to as “Borrower(s)”
(which expression shall unless excluded by or repugnant to the context include its
legal heirs, administrators, executors, successors and permitted assigns) of the
second part.

(----Add above para in case of Joint borrower----)

The terms “Bank” and “Borrower” referred to above shall collectively be referred to as
the parties and individually as party

Whereas the Bank is engaged, inter-alia, in the business of banking and has
developed a loan product to lend against Sovereign Gold Bonds (SGB) issued by the
Reserve Bank of India on behalf of Government of India.

And whereas, the Sovereign Gold Bonds carry sovereign guarantee and are classified
as Government securities and can be dealt with as per the extant provisions of the
Government Securities Act, 2006.

And whereas the Reserve Bank of India has permitted banks to lend against the SGBs
during the tenor of the SGB.

And whereas the borrower has represented to the Bank that he/she is the holder of
_____ number of Sovereign Gold Bonds having a total holding of____________
grams of gold, which is held in Demat Form with the Depository/ Depositories which
is offered as security by the borrower as described in Schedule of this Agreement.
 And whereas the borrower has, for the purpose of his/her ______business/personal
purpose applied to the Bank for over draft limit on the security of the aforesaid gold
bonds and offered the Bank to mark lien on the Sovereign Gold Bonds as security for
the due repayment of the aforesaid loan. The details of SGBs held in Demat Form
which is offered as security by the borrower is described in Schedule of this
Agreement.

And whereas the Bank has agreed to grant an over draft limit of Rs.____________
(Rupees__________________________________________ only).

And whereas the borrower has accepted the terms of sanction for the aforesaid
overdraft limit.

Now it is hereby agreed by and between the parties as follows:

1. That the over draft is for a period of __________ and shall be payable on demand and
can be renewed within the overall tenor of the SGBs, However, the interest is to be
remitted on half-yearly basis.

2. That the borrower shall maintain the Loan to Value ratio of ____% throughout the tenor
of the loan/over draft. If there is any shortfall in the margin fixed by the Bank, based
on the market value of the security, the borrower shall make good the shortfall
immediately so that the loan to value (LTV) ratio is always maintained.

3. The Borrower shall pay interest at ………...% as spread over _______ Repo Linked
Lending Rate (RLLR) of the Bank, presently being ……..%, (hereinafter referred to as
the “Benchmark Rate”) i.e ……..% per ________ with _______ rests plus applicable
interest tax, if any.

In case of change in repo rate by the RBI, the repo rate linked rate (RLLR) will be
changed from the following day.

The Spread may also change from time to time and the revised rate of interest shall
accordingly be charged from time to time.

Notwithstanding any other clause of the agreement, the Spread and the Benchmark
Rate of interest payable by the Borrower and the periodicity of rests shall be subject
to the changes/variations made by Reserve Bank of India/the Bank as the case may
be from time to time and the revised rate of interest shall accordingly be charged and
shall not require any separate communication to the customers from the bank.

In the event of there not being any Spread and/or Reference Rate, the borrower agrees
to pay the interest at the rate as prescribed by the Bank from time to time.

The interest shall be calculated on daily balance basis due to the Bank and shall be
charged on the last working day of the month so long as the amount due under the
Loan is not repaid in its entirety and shall form part of the principal and carry interest
at the applicable interest rate.
 Any interest, commission or fee accruing under this Agreement will accrue from day
to day and is calculated on the basis of the actual number of days elapsed and a year
of 365 (three hundred and sixty five) days.

4. The Borrower agrees that in case the loan is pre-paid by availing loan from other
bank/FI, he will bear and pay the prepayment charges at _____% of the outstanding
amount of the loan pre-paid.

5. That the borrower shall get the security of SGBs noted in favour of the Bank in the
Books of Depositary Participant/Authority and the Bank will disburse the loan
amount/allow over draft only after getting the lien marking confirmation from the
concerned Depositary Participant/Authority.

6. That it is agreed by the Borrower that the Bank shall be at liberty to refuse
overdraft and stop making advances at any time without assigning any reasons
whatsoever even without any prior notice in which event, the bank shall not be liable
to pay any damages if suffered by the borrower on that account.

7. That the Bank is entitled to take steps for the disposal of the underlined SGBs for the
liquidation of the loan/over draft amount at any point of time if the operation of the
account is not satisfactory.

8. That the borrower undertakes to inform the Bank regarding change in my/our
occupation/employment/residential address and to provide any further information that
the bank may require.

9. That the borrower undertakes that the funds borrowed shall be utilized for the purpose
for which the Loan/Facility has been allowed and not for any speculative or unlawful
activity.

10. That the borrower authorizes the Bank to reimburse itself out of the proceeds of the
SGBs, all costs, charges and expenses of keeping and selling the security and the
Bank shall not be responsible for any loss arising out of such disposal by itself or
through any brokers or auctioneers employed for the sale of the SGBs or in any other
manner whatsoever in respect of said security.

11. That the borrower agrees that if there is any short fall in recovering the outstanding
dues even after the sale/transfer of the SGBs by the Bank, he/she shall immediately
make the payment of the balance outstanding with interest, costs, etc., lest the Bank
is entitled to, at its sole discretion, initiate any legal proceedings for the recovery of the
outstanding dues with interest, costs, expense etc., In the event of the death of the
borrower, the Bank has got every right to recover the outstanding dues from his/her
legal heirs/representatives.

12. That the borrower will be liable for all costs for recovery incurred by the said Bank
before filing a suit and also for all costs in connection with the suit decree till recovery
of the full amount.

13. That the borrowers shall not be entitled to any interest for any sum which may at any
time stand to their credit in this account.
14. That the said Bank will always be at liberty to stop making fresh advances at any time
without previous notice, which notice, is hereby expressly waived and without
assigning any reason even though the said limit has not been fully availed of.

15. That the Borrowers agree that their liability to the said Bank for their dues on the said
account shall be joint and several with the authority and right to the said Bank to
compromise and/or give indulgence to any of them preserving its rights and remedies
all or any of them.

16. That the borrower agrees that the Bank shall not be answerable or responsible for any
depreciation in the value of the securities or any other changes or restrictions imposed
by RBI or the Government, that may result in diminishing value of the securities during
the currency of this loan.

17. That the borrower further agrees that the present security of SGBs is not under lien or
charge of any other Bank/FIs/other lending institutions and same will not be given to
other banks or financial institutions etc until the present loan availed from the Bank is
closed.

18. That the borrower agrees that even without first resorting to the sale or transfer of
SGBs, Bank is entitled to exercise any other legal right or adopt any other legal
recourse for the realization of outstanding dues from the borrower personally or from
his other assets or both, at the sole discretion of the Bank.
*(That the borrowers hereby agree to hold themselves liable as aforesaid on all the
confirmation letters signed by any one of them and on all the accounts stated to any
of them. The borrowers agree that each one of them is an agent for the other (s) to
acknowledge and admit liability outstanding in the account from time to time.)

*Applicable only in case of joint borrowers

19. *(The Borrower hereby agrees that its liability to the Bank shall, for the purpose of this
Agreement, be joint and several and that the Bank shall always have the right under
this Agreement to give indulgence or to grant time or negotiate with any one of the
Borrowers without the liability of the other Borrowers being affected thereby or without
prejudice to the Bank's rights and remedies against any one or all of the Borrowers.
Further that the Borrower hereby agrees to hold it liable as aforesaid on all
confirmation letters signed by any one of them.)

*Applicable only in case of joint borrowers and partnership firms, etc

20. That the Borrowers do further agree and hereby give to the bank during the currency
and for the payment of the dues under the said overdraft account, a general lien and
right to set off and combine accounts without notice and charge on all movable
property of every description coming into their possession on account of the borrowers
or any one of them for the time being held by the bank on behalf of the borrowers or
any one of them whether singly or jointly with others in India or elsewhere including,
without prejudice to the generality, any monies bullion, deposits, deposit receipts,
promissory notes, bill of exchange, cheques, railway receipts, Govt. bills and other
documents of every description.
21. The Borrower shall do all such acts, deeds and things as may be reasonably required
by the Bank, in accordance with applicable law, to co-operate with the Bank for
creation/filing of charge on the sovereign gold bond taken as security with concerned
authority(s.

22. The occurrence of a Cross Default will constitute an Event of Default under this
Agreement. An event of Cross Default shall be deemed to have occurred upon
occurrence of any of the following:

(a) Any financial indebtedness of the Borrower is not paid when due nor within any
originally applicable grace period.

(b) Any financial indebtedness of the Borrower is declared to be or otherwise

becomes due and payable prior to its specified maturity as a result of any actual or
potential default, event of default, or any similar event (however described) after the
expiry of any originally applicable grace period.

(c) Any commitment for any financial indebtedness of the Borrower is cancelled or
suspended as a result of any actual or potential default, event of default, or any similar
event (however described) after the expiry of any originally applicable grace period.

(d) Any creditor of the Borrower becomes entitled to declare any financial
indebtedness of the Borrower due and payable prior to its specified maturity as a result
of any actual or potential default, event of default, or any similar event (however
described) after the expiry of any originally applicable grace period.

(e) Any security over any assets of the Borrower is enforced by the holder of such
security, or any analogous procedure or step is taken in any jurisdiction.

(f) There is an event of default or potential event of default (howsoever described)

or other similar condition or event which with the lapse of time or giving of notice may
become an event of default under one or more agreements or instruments relating to
any indebtedness granted by any person to the Borrower.

23. Upon the occurrence of an Event of Default, including Cross Default as described
hereinabove, the Borrower shall render itself liable to legal action and the Bank shall
be entitled to terminate this Agreement, recall the facility and resort to any other legal
recourse available to the Bank, without any notice to the Borrower and realise the
Bank’s dues and recover the balance of its claim from the Borrower.

24. The Borrower declares that all information and data furnished by it to the Bank is true
and correct. The Borrower hereby agrees as a pre-condition of the Loan / Facility given
to the Borrower by the Bank that in case the Borrower commits default in the
repayment of the Loan / Facility or in the repayment of interest thereon or any of the
agreed installment of the Loan on due dates, or commits ‘wilful default’; the Bank
and/or the RBI will have an unqualified right to disclose or publish the Borrower’s
name, photograph, or the name of the Borrower’s company/firm/unit and its directors,
partners, proprietors as defaulter/wilful defaulter as the case may be, in such manner
 and through such medium as the Bank or the RBI in their absolute discretion may think
fit.

25. That the Borrower/s hereby give/s specific consent to the Bank for disclosing /
submitting the ‘financial information’ as defined in section 3(13) of the Insolvency and
Bankruptcy Code, 2016 (hereinafter the “IBC”) read with relevant regulations / rules
framed under the IBC, as amended and in force from time to time and as specified
there under from time to time, to any ‘information utility’ as defined in section 3(21) of
the IBC, in accordance with the relevant regulations framed thereunder, and directions
issued by the RBI to banks from time to time and hereby specifically agrees to promptly
authenticate the ‘financial information’ submitted by the Bank, as and when requested
by the concerned information utility.

26. The Borrower understands that as a pre-condition relating to grant of the Loan to the
Borrower, the Bank, requires the Borrower’s consent for the disclosure by the Bank of
information and data relating to the Borrower of the Loan facility availed of to be availed
by the Borrower, obligations assumed to be assumed by the Borrower in relation
thereto and default if any committed by the Borrower in discharge thereof. Accordingly
the Borrower hereby agrees and gives consent for the disclosure by the Bank of all or
any such-
(a) Information and data relating to the Borrower;
(b) Information or data relating to any loan / credit facility availed of/to be availed,
by the Borrower, and
(c) Default, if any, committed by the Borrower, in discharge of the Borrower's such
obligation, as the Bank may deem appropriate and necessary, to disclose and furnish
to the Credit Information Bureau (India) Ltd. and/or any other agency authorized in this
behalf by RBI.

27. The Borrower agrees to execute such further or other documents/deeds as and when
required by the Bank in respect of the Facility.

28. That the Borrower shall not have any right to assign its obligations under this
Agreement. However, the Bank has the right to transfer, assign, securitize or sell in
any manner, in whole or in part, the outstandings and dues under the Facility to any
third party without reference or intimation to the Borrower and any such
transfer/assignment/sale/securitization shall conclusively bind the Borrower and all
other persons.

29. The Borrower shall bear and promptly pay the Bank the following:

(a) all fees for services performed by the Bank, all out of pocket, travelling
expenses and other costs, charges and expenses reasonably incurred by the
Bank, its officers, employees or agents in connection with the negotiation,
preparation, execution, modification or amendment of any documents or
instruments contemplated or in connection with or relating to the Finance
Documents;

(b) all fees, costs and expenses incurred in connection with the
preservation, protection or release of the rights of the Bank on exercise of any
rights, remedies or powers granted under any Finance Documents;
 (c) all fees, costs and expenses incurred in connection with the enforcement
of any rights hereunder and/or under any other Finance Document including
any cost incurred in the assertion or defence of the rights of the Bank, for the
protection and preservation of whole or any part of the security and for the
demand, realisation and recovery of any amounts due and outstanding under
the Finance Documents; and

(d) all stamp duty, taxes, charges and penalties on any Finance Documents
if and when the Borrower may be required to pay the same according to the
applicable laws.

30. For Corporate Borrowers: (* Delete, if not applicable)

The Borrower shall promptly, and in any event within ______ days of the execution of
this Agreement, sign such other documents and do all such acts and things as shall
be necessary in accordance with applicable law to perfect the charge created under
this Agreement in favour of the Bank, in accordance with this Agreement, including
without limitation,
(a) recording the security created over the hypothecated goods under this
Agreement pursuant to Section 77 of the Companies Act, 2013 read with the
Companies (Registration of Charges) Rules, 2014 by filing duly completed Form
CHG.1 with the relevant registrar of companies (“ROC”) no later than 7 (seven) days
from the date on which security is created by the Borrower; and

(b) delivering to the Bank, a copy of Form CHG.1 filed as per (a) above along with
a payment receipt evidencing that the Form CHG.1 has been filed with the ROC, no
later than 7 (seven) days from the date on which security is created by the Borrower.

The Borrower shall, within 30 (thirty) days of the execution of this Agreement, deliver
to the Bank a certified true copy of the certificate of registration of charge issued by
the ROC.

31. No failure to exercise, nor any delay in exercising, on the part of the Bank, any right
or remedy under this Agreement shall operate as a waiver, nor shall any single or
partial exercise of any right or remedy prevent any further or other exercise or the
exercise of any other right or remedy. The rights and remedies provided in this
Agreement are cumulative and not exclusive of any rights or remedies provided by
law.

32. If, at any time, any provision of this Agreement is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the legality,
validity or enforceability of the remaining provisions nor the legality, validity or
enforceability of such provision under the law of any other jurisdiction will in any way
be affected or impaired.
33. Any term of this Agreement may be amended or waived only with the consent of the
Bank and the Borrower in writing and any such amendment or waiver will be binding.
34. This Agreement may be executed in any number of counterparts, and this has the
same effect as if the signatures on the counterparts were on a single copy of the
Agreement.

35. Any certification or determination by the Bank of a rate or amount under this
Agreement is, in the absence of manifest error, conclusive evidence of the matters to
which it relates.

36. That the contents of the Agreement have been read over and translated
into________________[name of the language of the borrower(s)] and the borrower[s]
having understood the contents thereof subscribe(s) to these presents.

In witness whereof the parties have signed these presents on the day, month and year
above mentioned.

BORROWER(S) FOR PUNJAB NATIONAL BANK

SCHEDULE OF SECURITY

(DETAILS OF SGB TAKEN AS SECURITY)

 Annexure N

Details of Sovereign Gold Bond offered as security

1. Total number of Bonds : ______________.

2. Value of Security: `________.

3. Net weight of Gold: ________________ grams.

4. Name of the Banks/FI in which the Demat account is maintained with:

S.No. Name of the Bank Depositary Demat Account Folio No of

with its Branch Participant Number of Bonds
name ID (DPID) Borrower
1

Branch Manager Borrower

PNB 2026
 PNBSGB I

Investor Request for Pledge/Lien Marking

Date:

Name & Address: (Loan sanctioning Branch)

_______________________________
_______________________________
_______________________________
_______________________________

Dear Sir,

Subject: Pledge/Lien against SGBs

Reference: Investor ID/ Demat Account Number………………………………………

In consideration of ---------------------------- (hereinafter called “the Bank” or Financier)

having granted/ agreeing to grant me/us a Loan against the Security of ………...
(number of units)units of Sovereign Gold Bonds(hereinafter called “SGBs”) under
Investor ID/Demat Account Number……………………………………………...held in
my/our name and on the understanding that the Bank is authorised/being given
necessary authority to ask Depository to note a lien in favour of the Bank on these
units in the books of RBI I/we hereby authorize RBI to note a lien on the units
mentioned herein in favour of ------------------------ till the same is vacated by the Bank
in writing. We further confirm that these units are presently available as free balance
and that no lien has been marked on these units.

2. I/we further undertake that I/we shall not

transfer/assign/redeem/repurchase/switch/nominate/gift etc., these units during the
period that the units are pledged with the Bank. I/We further undertake to indemnify
RBI against any losses, financial or otherwise which may arise out of fraud, mistake
etc. I/We hereby authorize RBI to redeem the units in favour of the Bank in case of
termination or winding up of the Scheme for any reason whatsoever.
Yours faithfully
S.N. Name Signature

1st Holder

2nd Holder

3rd Holder

Place: …………………………

Date:…………………………
 PNBSGB II

Letter to be addressed to the Depository by the Loan Sanctioning Branch:

Noting of Pledge/Lien on the units of SGBs

Reference No:

Date:

To,
……………………………………………
………………………...…………………
……………………………………………
………………………...…………………
……………………………………………

Dear Sir/Madam,

Subject: Pledge/Lien Marking on units of Sovereign Gold Bonds (SGBs)

Reference: Investor ID/Demat Account Number………………………………………

We have entered / propose to enter into an agreement with our client, Mr. /Mrs. /M/s.
………………………………………………………………. (“the Client”) for granting loan
against security by way of lien on Units of Sovereign Gold Bonds (“the Units”) held in
the name of the Client(s).

The authority letter issued by …………………………………………… (Investor’s

name) for marking the Pledge/Lien in respect of units in our favour is enclosed.

Accordingly, we request you to please note lien in our favour on the Units detailed
below:
Sr. ISIN Investment Holder Name No. of Units
No. Serial
Lien to be marked in favour of:
Name of the Bank : Punjab National Bank
Address : _______________________________________________.
_______________________________________________
City : ____________________
Contact Person : ____________________
Email id : ______________________ Telephone: ______________

Please note that Pledge/lien marked in our favour should be vacated only on the basis
of our written communication to that effect and not otherwise.

Please send the confirmation to that effect at the earliest to the following address:

Mr. ____________________

Punjab National Bank

Address –:___________________________________

____________________________________

Pin code: ____________________

Email id: ________________________________________

Thanking you,

Authorized Signatory

Bank’s seal/GBPA number of official.

 PNBSGB III

Letter to be addressed to the Depository by Loan Sanctioning Branch:

Invocation of Pledge/Lien on units of Sovereign Gold Bonds (SGBs) &
liquidation in favour of the bank

Reference No:
Date:

To,
……………………………………………
………………………...…………………
……………………………………………
………………………...…………………
……………………………………………

Dear Sir,

Sub: Invocation of Pledge/Lien on units of Sovereign Gold Bonds

(SGBs)&liquidation in favour of the bank
Reference: Investor ID/Demat Account Number ………………………………………

We had granted a Loan/Overdraft facility against the pledge of units of Sovereign Gold
Bonds (“the Units”) to our client, Mr. /Mrs. /M/s.
………………………………………………………………. (“The Client”), details of
which are placed in table below.
Sr.No ISIN Investment Holder No. of Units Date of Lien
Serial Name

However, since the said client has failed to repay the loan / maintain the adequate
margin, we request you to invoke the Pledge/lien noted on SGBs.

Yours faithfully,

Authorized Signatory
Bank’s seal/GBPA number of official.
 PNBSGB IV

UNDERTAKING - LOANS AVAILED OF BY THE APPLICANT

To,
The Branch Manager,
Punjab National Bank, (Loan sanctioning Branch)

_________________
_________________

Dear Sir,

LOAN AGAINST SOVEREIGN GOLD BONDS (SGBs) HELD IN DEMAT FORM

UNDERTAKING - LOANS AVAILED OF BY ME/US

Name of Applicant………………………………. &……………………………….

With reference to my/our application for sanction of loan under your LOAN
AGAINST SOVEREIGN GOLD BONDS (SGBs) HELD IN DEMAT FORM Scheme,
loans availed by me/us against the security of SGBs, are as under:
Loan availed Loan No of Quantity of
Sr. Details of
from(Bank/Financial Sanctioned units SGBs
No. Loan
Institute) Date Pledged pledged(in gms)

TOTAL

2. I/we further undertake to intimate/advise you if I/we apply for any other loan(s)
in future.

Yours faithfully,

(Signature of the applicant)

Date:
Name:
Address:

__________________
__________________
 PNBSGB V
CONSENT LETTER

To,
The Branch Manager,
Punjab National Bank, (Loan Sanctioning Branch)

_________________
_________________

Dear Sir,

LOAN AGAINST SOVEREIGN GOLD BONDS (SGBs) HELD IN DEMAT FORM

CONSENT LETTER FOR SELLING SGBS PLEDGED TO THE BANK

Name of Applicant ………………………………. & ……………………………….

With reference to my/our application for sanction of loan under your LOAN
AGAINST SOVEREIGN GOLD BONDS (SGBs) HELD IN DEMAT FORM Scheme,
I/We undertake to immediately regularize the account/replenish the shortfall in the
margin, when called upon by the Bank, in case of adverse variation in the market
price of the pledged units of Sovereign Gold Bonds (SGBs).

2. I/we further undertake that in the event of my failure to regularise the account
immediately, Bank will have the right to get the security transferred in its name and
arrange for its sale without any further reference to me. The Bank shall exercise
this option without prejudice to its right to recover the dues by other means.

Yours faithfully,

(Signature of the applicant)

Date:
Name:
Address:
_____________________
 PNBSGB VI

Letter to be addressed to the Depository by the loan sanctioning branch:

Removal of Pledge/Lien on units of Sovereign Gold Bonds (SGBs)

Reference No:
Date:

To,
_____________________________
_____________________________
_____________________________
_____________________________

Dear Sir,

Sub: Removal of Pledge/Lien on Units of Sovereign Gold Bonds (SGBs)

Reference: Investor ID/Demat Account Number ………………………………………

We had granted a Loan/Overdraft facility against the pledge of units of Sovereign Gold
Bonds (SGBs)(“the Units”) to Mr. /Mrs. /M/s.
………………………………………………………………. (“The Client”), details of which
are as under:
Sr.No ISIN Investment Holder Name No. of Units Date of Lien
Serial

As the aforementioned client has repaid/closed loan/overdraft/credit facility granted

against the pledge of the above referred units, we now request you to vacate the lien.

Yours faithfully,

Authorised Signatory
Bank’s seal/GBPA number of official.
 PNBSGB VII

Letter to be addressed to loan sanctioning branch by Depository:

Confirmation of Marking/Removal/Invocation of Pledge/ Lien on units of
Sovereign Gold Bonds (SGBs)

Reference No:
Date:

To,
_____________________________
_____________________________
_____________________________
_____________________________

(Address of Loan Sanctioning Branch)

Dear Sir,
Sub: Confirmation of Marking/Removal/Invocation of Pledge/Lien on units of
Sovereign Gold Bonds (SGBs)

Reference: Investor ID/Demat Account Number ………………………………………

We refer to your letter no ……………………….. dated ……………………….. and

confirm Marking/Removal/Invocation of Pledge/Lien on units of Sovereign Gold
Bonds (SGBs)details of which are as under:

Sr.No ISIN Investment Holder Name No. of Units

Serial

Yours faithfully,

Authorised Signatory