National News
FinMin Urges RBI to Exempt Small Gold Loans from Draft Norms, Proposes 2026 Rollout
In response to growing concerns over the Reserve Bank of India’s (RBI) proposed gold loan regulations, the Union Ministry of Finance has urged the central bank to exempt small-ticket borrowers — those availing loans below ₹2 lakh — from the draft guidelines. The Department of Financial Services (DFS) has also recommended that the implementation of these new norms be deferred until January 1, 2026, to allow sufficient time for adaptation at the ground level.

The Ministry’s intervention follows a letter from Tamil Nadu Chief Minister M.K. Stalin, who highlighted the vital role gold-backed loans play in supporting small and marginal farmers. Stalin argued that such borrowers often lack formal land titles or income documentation, making gold loans their most accessible form of institutional credit. “This is not ornamental gold — it is their shield against life’s uncertainties,” Stalin said in a post on X (formerly Twitter), warning that the proposed RBI rules could harm the dignity and survival of poor and middle-class families.
The Finance Ministry stated on X that the DFS, under the guidance of Finance Minister Nirmala Sitharaman, has examined the draft regulations and submitted suggestions to the RBI to ensure that small borrowers are not adversely affected. Notably, nearly 70% of gold loan borrowers fall under the ₹2 lakh category, with the average loan size at ₹88,000, as per data from Muthoot Finance.
Muthoot Finance’s Managing Director, George Alexander Muthoot, welcomed the Ministry’s recommendations, calling them a progressive step toward balancing regulatory oversight with financial inclusion. He emphasized that the proposed exemption and phased rollout reflect a clear understanding of the realities faced by rural and underserved borrowers.
The RBI’s draft guidelines, released on April 9, seek to tighten regulations around gold loans amid a surge in lending and rising non-performing assets (NPAs). Key proposals include a 75% cap on the loan-to-value (LTV) ratio for consumption loans, verification of gold ownership, and a 12-month maximum term for bullet repayment loans. The RBI also proposed restrictions on loans backed by financial assets linked to gold or silver, such as ETFs and mutual funds.
The DFS has stressed the need for practical, phased implementation and reaffirmed that the RBI is currently reviewing feedback from stakeholders before finalizing the framework. According to RBI data, total gold loan outstandings stood at ₹11.11 lakh crore as of December 2024, up from ₹8.73 lakh crore a year earlier. NPAs in the segment have also increased, reaching ₹6,824 crore in December 2024, including ₹2,040 crore from commercial banks alone.
The Finance Ministry’s intervention is seen as a critical step in ensuring continued access to gold loans for vulnerable sections of society, while allowing time to build necessary systems to support responsible lending.
National News
India Gold Conference 2026: India Gold Vision: Recycle, Reform & Re-Innovate
The future of India’s gold market, the conference made clear, will depend not merely on how much gold India owns, but on how efficiently that gold can be recycled, monetised and put to productive use.
The India Gold Conference (IGC) 2026, held in Goa under the theme “India Gold Vision: Recycle, Reform & Re-Innovate,” brought together policymakers, regulators, bullion banks, refiners, exchanges and jewellery-industry leaders to examine how India can build a more efficient, transparent and technology-driven gold ecosystem.
The inaugural session was graced by presence of Guest of Honour Richa Goel Agarwal, Chief General Manager, SEBI along with Sachin Jain, Regional CEO – India, World Gold Council , Prithviraj Kothari, National President, IBJA, Rajesh Rokde, Jignesh Shah, Mentor and Coach, IGM, Chairman-GJC, Samit Guha, MD- & CEO, MMTC-PAMP, Shivanshu Mehta, Head- Bullion and Chief Business Officer- MCX. Representing the organizer Eventell Global Advisory was Srivatsava Ganapathy, Director & CEO.
The panel sessions at India Gold Conference 2026 covered the key structural and strategic priorities shaping India’s gold market. Some of the sessions were: Making GMS Work, Strengthening Trade with Dubai Bullion Market, Exchange-based Spot Trading in Bullion, Meeting All Our Requirements for Jewellery Demand from Buy-Back of Old Gold Jewellery, Import Substitution Opportunities in Gold Investment Demand, and AI Use Cases in the Bullion Business.
A key focus was the future of the Gold Monetisation Scheme (GMS) and its potential to mobilise India’s large above-ground gold holdings, reduce dependence on imports and help contain the current account deficit (CAD).

Making GMS Work
An expert panel agreed that the GMS needs greater participation from the jewellery trade if it is to achieve meaningful scale. The discussion highlighted the role of RBI, SEBI and industry bodies in shaping the modified GMS and stressed the need to make gold deposits more liquid, transferable and commercially useful.
Among the proposals discussed was the possibility of tokenising GMS holdings, allowing investors greater liquidity and transferability. Converting GMS holdings into Electronic Gold Receipts (EGRs) could also enable gold to be used as collateral for borrowing.
However, taxation remains a significant concern for deposit-taking institutions, with the panel noting that uncertainty around tax treatment continues to act as a deterrent to wider participation.
Technology at the Core
The conference placed strong emphasis on technology as an enabler of gold-market reform. In his keynote, Jignesh Shah, Mentor & Coach, India Gold Metaverse, argued that traceability, transparency and trust must be integrated through technology.
He highlighted blockchain, asset fractionalisation and digital platforms as potential tools to broaden retail participation and create new avenues for gold investment, while also envisioning India as a potential leader in gold-backed financial ecosystems.


GoldSense™ Launched
IGM also unveiled GoldSense™, an AI-powered enterprise solution designed for non-destructive gold verification. The portable karatometer is designed to assess gold to depths of up to 7 mm, using AI-driven analysis without damaging the asset or relying on harmful X-ray radiation.
Priced at Rs 5 lakh per unit, the technology is positioned as a tool for more standardised, connected and data-driven gold evaluation.
Building a Spot Gold Market
Another major discussion centred on exchange-based spot trading in bullion. Industry leaders stressed that a liquid spot market is essential to modernise India’s bullion ecosystem, strengthen price discovery and support the country’s growing digital-gold market.
The panel also called for policy changes, particularly addressing double GST taxation and GST offset mechanisms. Collaboration between IBJA and IGM was cited as part of ongoing efforts to strengthen spot-price discovery.



Recycling Gold to Meet Demand
The conference also examined the potential of old-gold buybacks to meet a greater share of India’s jewellery demand without relying entirely on fresh imports. Gold recycling was positioned as a critical component of India’s long-term strategy to improve supply security and reduce import dependence.
Sessions additionally explored gold leasing, import substitution in investment demand, electronic gold receipts, Dubai bullion-market linkages and AI applications in bullion businesses.

The Bigger Picture
The discussions at IGC 2026 underscored a broader shift in India’s gold policy—from simply managing imports towards building a formal, liquid, technology-enabled and recyclable gold ecosystem.
For the GMS to fulfil its original promise, however, the message from the conference was clear: participation must extend beyond banks to jewellers and consumers, while liquidity, taxation, transferability and technology must be addressed together.
If these structural barriers are resolved, monetising India’s existing gold stock could become an important source of domestic supply, reduce reliance on imports and contribute to a more efficient gold market—and potentially help moderate the country’s CAD.
The future of India’s gold market, the conference made clear, will depend not merely on how much gold India owns, but on how efficiently that gold can be recycled, monetised and put to productive use.
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