Fin min recommends implementing RBI's draft norms on gold loans from Jan 1
This story was originally published at 09:57 IST on 30 May 2025
Register to read our real-time news.Informist, Friday, May 30, 2025
--Fin min moots implementing RBI's draft norms on gold loans from Jan 1
--Fin min moots excluding gold loans below INR 200,000 from RBI draft norms
--CONTEXT: RBI had floated draft norms on loans against gold in April
NEW DELHI - The finance ministry has recommended implementing Reserve Bank of India's draft norms on gold loans from Jan. 1 as such guidelines need time to take effect at the field level. The ministry, in post on X, said it has sent recommendations to the central bank to ensure that the requirements of small gold loan borrowers are not adversely affected.
The ministry has suggested that small ticket borrowers below INR 200,000 may be excluded from the requirements of these proposed directions to ensure timely and speedy disbursement of loans for such borrowers. "It is expected that concerns raised by various stakeholders, as well as the feedback received from the public, will be duly considered by the RBI before finalising the directions on the same," the finance ministry said.
The RBI had invited comments on draft norms on gold loans in April and was accepting suggestions till May 12. The guidelines proposed that the maximum loan-to-value ratio with respect to the consumption of gold loans should not exceed 75%. They also said the ceiling of 75% loan-to-value would apply to all gold loans sanctioned by non-bank lenders, irrespective of the purpose for which loans have been sanctioned.
The draft also proposed that in case of bullet repayment loans, the loan-to-value ratio should be computed by treating the total amount repayable by the borrower at maturity rather than the loan sanctioned at origination. End
Reported by Krity Ambey
Edited by Vandana Hingorani
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
