The registrar of cooperative societies, Goa has issued a circular directing all urban credit societies, multipurpose societies and the remaining societies to discontinue the practice of loans against gold with immediate effect, reports Navhind Times.
The circular says various urban credit societies, multipurpose co-operative societies and VKSS societies etc are advancing loans against gold to members without having any specific provisions in their bye laws, without framing loan rates and without the approval of the registering authorities (RoC).
Earlier the issue of a loan against fake gold ornaments mortgaged by a co-operative society was highlighted in the media.