RBI Guidelines : The Reserve Bank of India has released its final guidelines on gold metal loans, expanding the range of businesses allowed access to these facilities. The revised rules, which will come into effect from April 1, 2026, are part of amendments made to the Master Direction on Import of Goods and Services and the Gold Monetisation Scheme.
Key Takeaways
Quick Read- Key development: Wider eligibility for GML
- Statement and additional provisions under GMS
These changes are aimed at improving liquidity for jewellers and strengthening compliance and monitoring in the gold lending ecosystem.
Key development: Wider eligibility for GML
Under the updated framework, designated gold importing banks can provide import-linked GML to entities engaged in the manufacture or sale of jewelry in the domestic or export markets. Jewelers who are not manufacturers themselves can also borrow, provided they outsource production to registered artisans, goldsmiths, or manufacturing firms on a job-work basis.
The RBI said: “Designated banks importing gold may grant import-linked GML to entities that either manufacture and/or sell jewellery. The condition is that jewellers who are not manufacturers themselves can borrow under GML only for outsourcing their manufacturing.”
Statement and additional provisions under GMS
The central bank has also permitted designated banks implementing the Gold Monetisation Scheme to issue GMS-linked GML to jewellers and specifically to MMTC for minting India Gold Coins.
Banks will have to formulate lending and risk management policies detailing categories of borrowers, limits on the quantity of gold per borrower, and upper limits on overall exposure.
They will also need to provide details of due diligence requirements to assess eligibility and credit needs. GML exposures will follow the same capital adequacy and prudential norms as other loan products.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.
