Reserve Bank of India (RBI) issued comprehensive rules for Lending Against Gold and Silver Collateral, aiming to standardize and harmonize regulations governing silver and gold loan across all regulated entities (REs).
The RBI has permitted regulated entities to lend against gold jewellery, ornaments, and coins to meet borrowers’ short-term financial needs, while restricting lending against primary gold forms like bullion to curb speculative activities. However, the diverse mandates and risk appetites of various REs led to regulatory disparities.
Scope and Applicability: These directions apply to all commercial banks (excluding Payments Banks), primary (urban) and rural cooperative banks, and all Non-Banking Financial Companies (NBFCs), including Housing Finance Companies (HFCs). They cover loans for both consumption and income generation purposes where eligible gold or silver collateral is accepted.
These new directions, effective no later than April 1, 2026
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12859&Mode=0
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