A consumer commission in Shimla has ordered a bank to pay a borrower the market value of around 103 grams of pledged 22 carat gold, along with Rs 50,000 in compensation and costs. It found that the bank did not follow RBI rules while carrying out a surprise check on the jewellery.
The borrower had taken a gold loan and later heard from the lender that his jewellery was fake. He told the commission the check was done without his consent or any notice. The commission allowed his complaint in an order announced on 24 September 2026 and found deficiency in service and unfair trade practice on the bank's part.
