EconomyGS3-Economy
RBI Proposes Streamlined Rules of Lending Against Gold
The RBI is proposing to streamline rules for lending against gold jewellery and ornaments to address existing issues.
April 15, 2025
Key Points
- 1The RBI has put out draft guidelines for consultation on lending against gold jewellery.
- 2The norms aim to harmonize the regulatory framework and address concerns about improper valuation.
- 3The central objective is to enable a standardized framework for proper due diligence.
- 4The RBI proposes to mandate lenders do not extend loans where ownership of metal is doubtful.
- 5The loan to value ratio (LTV) against gold collateral cannot exceed 75% of its value.
Important Terms
RBIGold loansLendingGuidelinesLTV
UPSC Current Affairs
Last Updated: 6/17/2025