National News
RBI tightens gold loans norms; proposes LTV ratio at 75% of pledged gold’s worth
RBI has proposed sweeping changes to how financial institutions lend against gold, tightening oversight in a bid to curb risks and bring greater transparency to a booming segment of the country’s credit market.
In draft guidelines released April 3, the Reserve Bank of India (RBI) proposed capping the loan-to-value (LTV) ratio for gold loans at 75% of the pledged gold’s worth. The move would standardize lending limits across banks and nonbank financial companies (NBFCs), ending a pandemic-era relaxation that had allowed NBFCs to lend up to 90% of the value of gold collateral for a year.
The new cap would apply uniformly, regardless of whether loans are intended for consumption, business, or other purposes—a significant shift that levels the regulatory playing field for NBFCs and banks alike.These proposals aim to harmonize regulations across entities while aligning them with risk-taking capabilities according to RBI Governor Sanjay Malhotra.
India is one of the world’s largest consumers of gold, and borrowing against jewelry and bullion is a common way for households and small businesses to access credit. The sector has grown rapidly, particularly through NBFCs that target less formal borrowers, raising concerns about inconsistent lending practices and over-leveraging.
In addition to the LTV cap, the RBI is pushing for enhanced internal controls and transparency. Lenders will be expected to establish their own LTV thresholds based on internal risk assessments. A standardized valuation framework will also be introduced to ensure consistency in assessing gold collateral across branches.
Under the new rules, banks and NBFCs must disclose the reference price of gold used for loan calculations and implement a uniform methodology to evaluate purity and measure gross and net weights. This information must be made publicly available on their websites.
The proposals are part of the RBI’s broader developmental and regulatory agenda. A public consultation process is now underway, and final guidelines are expected later this year.
The central bank’s move signals a growing focus on borrower protection and market discipline in India’s informal lending space, where gold loans remain a crucial—but sometimes opaque—source of credit.
National News
DGSL launches India’s first structured insurance appraisal service for GJ sector
DGSL, one of India’s leading gems and jewellery testing and certification authorities, has announced the launch of specialized Insurance Appraisal Services for gems and jewellery, introducing what it describes as the country’s first structured, standards-driven appraisal service dedicated to insurance documentation.
The initiative seeks to address a long-standing gap in the Indian market, where jewellery insurance documentation has often lacked standardized gemological evaluation and globally aligned valuation methodologies / practices.
With the rising value of fine jewellery collections, heirloom pieces, and investment-grade gemstones, the demand for precise and internationally compliant insurance appraisals has grown significantly. DGSL’s appraisal reports include detailed gemstone identification, grading analysis, market-aligned valuation methodology, high-resolution imaging, and clearly defined value conclusions prepared specifically for insurance coverage purposes.
The reports aim to provide clarity and reliability for clients, insurers, and financial institutions by ensuring accurate replacement value assessments and minimizing ambiguity during insurance claims.
In a parallel development, Atul Jain, Director at DGSL, has been granted membership in the National Association of Jewelry Appraisers (NAJA), one of the world’s most respected professional organizations dedicated to jewellery appraisal standards, ethics, and professional education.
Jain, a Graduate Gemologist with more than four decades of experience in the jewellery trade, has played a significant role in gemological education, diamond grading, and jewellery authentication in India. His professional expertise spans natural diamonds, coloured gemstones, antique jewellery evaluation, and market advisory.

Atul. Jain said, “The introduction of structured insurance appraisal services marks an important evolution for the Indian jewellery industry. Jewellery today represents not only adornment but also heritage, investment, and emotional legacy. It deserves documentation that meets global standards of accuracy, transparency, and credibility.”
DGSL’s Insurance Appraisal Services will cater to private collectors, high-net-worth individuals, jewellery retailers, estate planners, financial institutions, and insurance providers. Each appraisal follows internationally accepted valuation principles while being adapted to the dynamics of both the Indian and global jewellery markets.
With over two decades of excellence in testing and certification, DGSL has built a reputation grounded in scientific accuracy, ethical practices, and client trust. The addition of Insurance Appraisal Services further strengthens DGSL’s position as a comprehensive authority in gemological certification and valuation.
This initiative sets a new benchmark for professionalism within India’s gems and jewellery sector, ensuring that valuable jewellery assets are not only authenticated but also properly valued and protected.
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