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Informist, Monday, Sept. 29, 2025

MUMBAI – The Reserve Bank of India Monday issued draft circulars outlining multiple regulatory guidelines for public feedback, according to information on the central bank's website. These guidelines are for gold metal loan scheme, large exposure framework and credit information reporting. 

The first draft, which pertains to gold metal loans, proposes fixing a repayment tenor for loans extended to jewellers other than exporters to a revised ceiling of 270 days from the current 180 days. 

Further, the guidelines propose to allow gold metal loans to domestic non-manufacturers for outsourcing their manufacturing of jewellery, the RBI said. The central bank aims to further liberalise the scheme, harmonise the extant regulations applicable across eligible borrower segments in jewellery industry and provide more operational freedom to banks to devise their gold loan policy, it said. 

The second draft talks about large exposure framework and guidelines on management of intra-group transactions and exposures. The first amendment proposes that the exposure of Indian branches of foreign banks to their head offices shall be reckoned only for large exposures and not intra-group transactions. "Such exposures, where cleared through a central counterparty, shall be considered on a gross basis," the RBI said. 

The second draft circular proposes to extend the credit risk mitigation benefit to any exposure of a foreign bank branch to its head office. The intra-group transaction exposure threshold, which is currently linked to paid-up capital and reserves, is also proposed to be linked to tier-1 capital of banks.

The last draft circular focuses on credit information reporting by credit institutions to credit information companies. The RBI has proposed to transition to weekly credit information submission by credit institutions. The draft amendments also mandate measures to facilitate faster data submission and error rectification by the institutions. Further, the circular also proposes to capture central know your customer number in a separate field in the reporting format of consumer segment.

The comments on the draft circulars are invited from banks, market participants and other interested parties till Oct. 20, according to the RBI.  End

Reported by Kabir Sharma

Edited by Deepshikha Bhardwaj

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