On June 6, RBI introduced final guidelines for gold loan and silver loan. The central bank has refused to give a loan to the bank and NBFC in lieu of gold bar (bullion) and gold or silver financial assets. Banks and NBFCs will not be able to give loans in lieu of Gold ETFs, Mutual Funds’ gold scheme and digital gold. The RBI has made this rule to reduce the risk for companies and banks with gold loan.
Risk for banks and NBFCs will reduce
Muthoot Fincorp K CEO Shaji Varghese said that there is a difference between gold bullion or ETF and gold jewelery. The motives of both also vary. The value of Gold Bullion and Gold ETF may be rapidly ups and downs. This increases the risk for loan bank or NBFC. Therefore, RBI has stopped banks and NBFCs by giving loans on such assets.
Transparency will come in the process of gold loan
Manipal Fintech CEO Pooja Singh said, “The value of gold jewelery is formal. It is relatively difficult to assess gold bar, silver and financial instruments instead.” This will fulfill the purpose of RBI to bring transparency in the process of gold loan. Gold and Silver ETF causes the risk of playing. In the last few years, the interest of customers in gold loans has increased considerably.
Now you can take a loan by pledging silver
Varghese said, “RBI has also increased the scope of assets for loan to include silver. It has kept the gold ETF and other such financial instruments out of the scope of acceptable assets for the loan.” He said that the RBI’s effort is to change many of the current rules of gold loan and not create trouble. Since, those taking gold loans contain many customers who take a loan of small amounts, which can cause them a problem with major changes in the rules.
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RBI released guidelines in April
It is worth noting that the current rules (not new rules) will apply to the loans made before April 1, 2026. According to the RBI rule, Gold Jewelery, Suppesty Mintgo Coin (22 or more carats that are sold by banks) can be pledged to a loan with a bank or NBFC. The condition in this is that a customer can take a loan by pledging up to 50 grams of gold.