The Reserve Bank of India has tightened norms for loans against pledge of gold jewellery. The objective behind the move is to keep demand of gold under check. In a notification, RBI said that in order to standardise the valuation and make it more transparent to the borrower, it has been decided that gold jewellery accepted as collateral will have to be valued at the average of the closing price of 22 carat gold for the preceding 30 days as quoted by the Bombay Bullion Association. Currently, there is no standard method for arriving at the value of gold accepted as collateral and valuation is arbitrary and opaque.