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
Challani Jewellery Mart Marks 13th Anniversary with Grand Celebrations and Employee Recognition
Grand Event Honours Employees With Rewards and Recognises Contributions, Celebrating Growth, Unity, and Organisational Milestones
Challani Jewellery Mart, with a strong presence across Chennai, Madurai, and Pondicherry, celebrated its 13th Anniversary at the Sheraton Grand Chennai Resort & Spa in a grand and vibrant ceremony.
The event witnessed the presence of distinguished personalities, including Ravi, IPS, Isari Ganesh, Vikramaraja, Varadarajan, Sowbhagya, Jayantilal Challani, Hemalatha Jayantilal, Rishub Challani, Goutham Challani, and Sripal Challani, along with several other notable guests.
A key highlight of the celebration was the recognition of employees, where 52 staff members were rewarded with televisions, washing machines, and refrigerators for their dedication. In a remarkable gesture, 8 employees were also gifted plots worth ₹15 lakh each, acknowledging their significant contribution to the company’s growth.
The gathering was further enriched by inspiring addresses from Erode Magesh and Ramakrishnan, whose speeches resonated with the audience. The event also featured lively dance performances by staff, adding energy and entertainment to the celebrations.
The day was marked by a spirit of achievement, appreciation, and camaraderie, making it a memorable milestone for the organisation. The event concluded with a vote of thanks by Elayaraja, Vice President, bringing the celebrations to a close on a note of gratitude.
-
National News9 hours agoAKSHAYA TRITIYA 2026- Gold Exchange, Lightweight & Diamonds- How Akshaya Tritiya 2026 Rewrote The Festive Playbook
-
International News10 hours ago74th Bangkok Gems & Jewelry Fair Set for September 2026 with Expanded Global Showcase
-
BrandBuzz5 hours agoMalabar Gold & Diamonds Unveils ‘Aanika’ Natural Diamond Collection For Festive Season
-
National News1 day agoIndian Diamond Jewellery Market Is Second-Largest Market Globally: 2025 De Beers India Diamond Acquisition Study


