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Finance Ministry Urges RBI to Exempt Sub-₹2 Lakh Gold Loans, Delay Norms to 2026

The Department of Financial Services recommended excluding small-ticket borrowers from the draft gold loan norms, postponing implementation until January 1, 2026.

Stalin welcomes Centre's response to RBI gold loan row, urges state consultation
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Representative Image (Photo: IANS)
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Overview

  • Department of Financial Services recommended excluding loans up to Rs 2 lakh from RBI’s draft gold loan guidelines to protect small-ticket borrowers.
  • The Finance Ministry also advised delaying the norms’ enforcement until January 1, 2026 to allow lenders time for field-level readiness.
  • RBI’s April 9 draft seeks to harmonize gold loan regulation with a uniform 75% loan-to-value cap, mandatory assaying and stricter ownership verification.
  • Tamil Nadu CM M.K. Stalin cautioned that tighter underwriting could restrict credit access for farmers and low-income households.
  • Outstanding gold loans climbed 76.9% year-on-year to Rs 1.78 lakh crore by January 2025, underscoring the need to balance risk controls with credit inclusion.