RBI proposes new gold loan rules: What borrowers and lenders need to know

The RBI said the proposed framework is meant to strengthen conduct-related aspects and address concerns seen in current lending practices.

The Reserve Bank of India (RBI) on  Wednesday (April 9) published a draft regulatory framework for lending against gold. The move comes shortly after the central bank decided to cut the repo rate, signaling a broader effort to fine-tune credit practices and consumer protection.

The draft aims to introduce a harmonised set of rules across all lenders—banks, NBFCs, co-operative banks, and regional rural banks (RRBs)—involved in gold-backed lending.

The RBI said the proposed framework is meant to strengthen conduct-related aspects and address concerns seen in current lending practices.

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