Balancing between Bling & Business: RBI proposes new Gold Lending rules
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Genesis of the change
The RBI on September 30, 2024, flagged several concerns in gold lending practices of financial entities. Further, there were separate guidelines for banks and NBFCs leading to regulatory arbitrage and operational ambiguity. On April 09, 2025, the RBI introduced the Reserve Bank of India (Lending Against Gold Collateral) Directions, 2025 (Draft Directions).
The Draft Directions intend to:
- Harmonise guidelines w.r.t. gold lending across all REs.
- Address previous observations raised by RBI in lending practices and plug any loopholes.
In this write-up, we highlight the major changes for lenders, and particularly for NBFCs (The same are subsequently elaborated in the article).
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