RBI to Rationalise Gold Loan Guidelines

Reserve Bank Governor Sanjay Malhotra announced new guidelines on gold loans, aiming to rationalise rather than tighten lending. The guidelines extend existing NBFC rules to banks and will be open for consultation. The regulations will address conduct issues and unify rules across financial entities.

Reserve Bank Governor Sanjay Malhotra announced on Wednesday that forthcoming guidelines on gold loans aim to rationalise lending rather than impose stricter controls.

The draft guidelines, which extend existing NBFC rules to the banking sector, will soon be issued for consultation before being finalised. "There is no tightening," Malhotra stated.

The governor revealed that these regulations will focus on conduct and unify guidelines across different regulated entities with varying risk capabilities, covering loans against gold jewellery for consumption and income purposes.

(With inputs from agencies.)