Gold Loan Rules: The RBI released the draft of the new gold loan rules on 9 April. There has been considerable discussion in the financial sector regarding this draft. Bankers believe that this rule can cause problems for individuals who take out a loan by pledging gold to meet their immediate financial needs. RBI aims to protect the interests of people taking a gold loan. For this, the central bank aims for uniformity in the rules governing gold loans among commercial banks, cooperative banks, and NBFCs.

People with low incomes who need more money often take out a gold loan every year. Bankers believe that by tightening the rules of gold loan, people taking gold loan will again be forced to take loan from people like moneylenders at higher interest. RBI’s intention behind introducing this rule is correct. However, it can hurt the gold loan market.

According to the new rules, the RBI has told the banks that gold loans will now be available only in exchange for gold jewellery and coins issued by banks. RBI has clearly stated that gold loans will be given to those who have gold bars, bullion or ingots. This means that only those who have gold jewellery or coins will be given gold loans from now on.

Whenever people suddenly need money, people in India often consider taking a loan against their gold.

Why is RBI changing the rules?

RBI is changing the rules related to gold loans because, in recent times, many people have been taking loans against gold. The price of gold is increasing rapidly. Currently, the cost of 24-carat gold in India is above Rs 95,000. With the rapid increase in demand for gold loans, the number of loans (NPA – Non-Performing Assets) that cannot be repaid to banks and finance companies is also rising. When a person is unable to repay a loan for any reason, that loan is classified as a Non-Performing Asset (NPA). Therefore, if strict guidelines are not established in time, it can lead to significant losses for both banks and borrowers.

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Priyanka Singh

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Priyanka Singh is an experienced journalist and Chief Copy Editor at Timesbull.com with more than six years of experience in digital media. She currently leads the Entertainment, Business, and Education desks, ensuring accuracy, clarity, and editorial excellence across content. Originally from Bihar, she brings strong subject understanding to her reporting. A native of Bihar, Priyanka developed a strong foundation in journalism through her education in Mass Communication at Jaipur National University and an early internship in print media. Her career spans both print and digital platforms, with extensive coverage in education, business, astrology, and entertainment. Her strength lies in presenting trending and complex information in a clear, engaging, and reader-friendly manner. Priyanka is known for delivering accurate, insightful, and engaging content.