Questions › Jewel Loan - Auction initiated in spite of payment of interest

Jewel Loan - Auction initiated in spite of payment of interest

 Subhashini J on Jul 19, 2018
I had availed a jewel loan and I could not pay the interest for 12 months. after which, a payment reminder notice was sent by bank. On its receipt, I had paid the full interest due till payment date. In the mean time, I had lost the Jewel loan identity slip. So, I could not renew the loan following payment of interest. With a month of this payment of interest in full, the bank had initiated jewel auction notice to me, though I had outstanding interest for less than a month due. In the mean time, I had informed the bank staff that I was about to get the indemnity bond for loss of Jewel loan identity slip. But, the Manager argues that, since the JL had become overdue after which it had to be renewed or jewels redeemed. And, they have their HO's report to initiate this auction. Kindly clarify whether the argument / action is permitted by RBI.
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