RBI's new, unified gold & silver loan rules

The new rules, which will be effective from 1 April 2026, attempts to standardise the existing guidelines

- DIPAK MONDAL @ New Delhi

The Reserve Bank of India (RBI) has raised the Loan-to-Value (LTV) ratio for loans against gold and silver to 85% for loans up to ₹2.5 lakh. This is part of RBI's new comprehensive set of rules for lending against gold and silver. The new rules, which will be effective from 1 April 2026, attempts to standardise and harmonise the existing guidelines and introduce new measures for better oversight, conduct, and consumer protection.

Here are the key highlights of the new rules:

Scope and purview of the rules: These rules 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.