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RBI Issues Revised Rules for Agri, Small Biz Loans Against Gold, Silver
The New Indian Express Dharmapuri
|July 12, 2025
The Reserve Bank of India has allowed voluntary pledge of gold and silver jewellery as collateral for agriculture and small business loans.
"It is clarified that loans against voluntary pledge of gold and silver as collateral by borrowers, sanctioned by the banks up to the collateral free limit, as covered under the extant circular/master direction, will not be construed as a violation of the above-mentioned guidelines as regards such collateral," RBI said in a circular on Friday updating the extant directions. The pledging norms will be applicable to all commercial banks, regional rural banks, small finance banks and all state and district cooperative banks, the RBI
This story is from the July 12, 2025 edition of The New Indian Express Dharmapuri.
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