RBI Issues Unified Guidelines for Lending Against Gold and Silver

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  • Last Updated on 9 June, 2025

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RBI gold loan directions 2025

Circular No. RBI/2025-26/47 DOR.CRE.REC.26/21.01.023/2025-26, Dated 06.06.2025

The Reserve Bank of India (RBI) has issued the RBI (Lending Against Gold and Silver Collateral) Directions, 2025, to streamline and harmonise the regulatory framework governing loans backed by precious metal collateral.

1. Objective of the Directions

The new Directions aim to establish a principle-based and uniform regulatory structure for all Regulated Entities (REs) engaged in extending credit against gold and silver. The initiative is part of RBI’s broader objective to enhance transparency, accountability, and risk management in lending practices.

2. Scope and Applicability

These Directions are applicable to all categories of Regulated Entities, including banks and non-banking financial companies (NBFCs), ensuring consistent treatment across the financial sector for loans backed by eligible precious metal collateral.

3. Key Areas Covered

The RBI Directions comprehensively address the following critical components:

  • General Conditions – Laying down the basic eligibility and operational parameters applicable to all loans secured by gold or silver.
  • Conduct-Related Guidelines – Setting standards for ethical practices, fair treatment of borrowers, and grievance redressal mechanisms.
  • Collateral Management Practices – Requiring robust protocols for the valuation, custody, verification, and insurance of gold and silver collateral to safeguard borrower and institutional interests.
  • Disclosure Requirements – Mandating transparency in terms, conditions, charges, and procedures related to such loans, both at the time of sanction and during the loan tenure.

4. Regulatory Intent

With these Directions, the RBI seeks to mitigate operational and reputational risks, ensure borrower protection, and promote prudent lending by aligning collateral-backed lending practices with best standards of governance.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied