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
Shringar House of Mangalsutra Signs MoU With IAGES To Enhance Trust In Gold Jewellery Trade
Mumbai, April 4, 2026: Shringar House of Mangalsutra Limited, one of India’s leading manufacturers of mangalsutra, has signed a Memorandum of Understanding (MoU) with the Indian Association for Gold Excellence and Standards (IAGES), reinforcing its commitment to advancing transparency, ethical practices, and standardisation across India’s gold jewellery industry.
India’s gold jewellery market is the cornerstone of the country’s culture and economy and continues to evolve with increasing focus on quality, trust, and standardisation. Frameworks such as IAGES, in alignment with the Bureau of Indian Standards (BIS) hallmarking system, are playing a pivotal role in strengthening consumer confidence and enabling the industry’s next phase of growth. With a large base of family-run businesses across the country, such initiatives will help in expanding access to certification and best practices across tier-2 and tier-3 markets.
Under this partnership, Shringar will actively promote the IAGES accreditation framework and Code of Conduct across its nationwide network of 2,000+ retailers and wholesalers. This will drive the adoption of responsible and standardised practices at the grassroots level. The collaboration will also roll out joint initiatives, including online webinars on compliance and industry best practices, accreditation drives across Shringar’s partner network, and awareness campaigns, both online and offline, to encourage broader adoption of the IAGES Code of Conduct.
Commenting on the collaboration, Mr. Chetan Thadeshwar, Chairman & Managing Director, Shringar House of Mangalsutra Limited, said:
“We have always believed that trust and transparency are essential in building a resilient jewellery industry. Our partnership with IAGES is a significant step in that direction, as we work towards strengthening ethical practices and standardisation across the ecosystem. By supporting IAGES’s accreditation mission, we look forward to driving meaningful change and setting higher benchmarks for the industry.”
Mr. Kaushlendra Sinha, CEO, IAGES, added:
“Shringar House of Mangalsutra’s is a respectable name in the Gold Industry, and their extensive reach across India’s jewellery retail landscape makes them a strong partner in advancing IAGES’s mission of driving transparency and ethical practices in the gold industry. This MoU will help accelerate accreditation awareness and adoption across their vast network, enabling us to collectively raise industry benchmarks and strengthen consumer confidence. We are thankful to Shringar leadership for proactively coming forward to promote the cause of transparency and good practices in the Indian Gold Industry.”
Shringar’s extensive reach across India’s jewellery retail landscape positions it as a key enabler in amplifying IAGES’s accreditation mission. The company will work with IAGES to support accreditation outreach, while IAGES solely handles accreditation.
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