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ARTICLE · 01 AUGUST 2025

RBI Issues Directions On Lending Against Gold And Silver Collateral

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The RBI has issued the Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025 (‘Directions') dated June 6, 2025, with directions to ensure compliance before April 1, 2026.

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The RBI has issued the Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025 (‘Directions') dated June 6, 2025, with directions to ensure compliance before April 1, 2026. These Directions apply to all loans for consumption or income generation purposes where gold or silver in the form of jewellery, ornaments, or coins is accepted as collateral security, by the following REs: (i) commercial banks; (ii) primary (urban) and rural co-operative banks; and (iii) all NBFCs. These Directions, inter alia, provide for the following:

i.    General Conditions and Restrictions:

(a) Advances against primary gold/ silver or financial assets backed by them (e.g., exchange traded funds (ETF) or mutual fund units) are prohibited.

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