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
Zaveri Bazaar Cluster Development Proposal Addresses Parking, Traffic Mobility, Safety, and Security For Citizens and Traders
Proposal Presented To Ravindra Chavan, The BJP’s Maharashtra President
A group of industry leaders met with Ravindra Chavan, the BJP’s Maharashtra president, to press for infrastructure and policy support aimed at revitalizing Mumbai’s Zaveri Bazaar. A comprehensive Cluster Development Proposal for Zaveri Bazaar was presented by Dhiraj Rajmal Baldia, Founder, Jain Bullion Gem & Jewellery Federation (JBGJF). Kanayaa Kakkad, Jt Treasurer-IBJA, presented the key focus areas, including improving parking infrastructure and enhancing traffic mobility to ensure greater safety and security for citizens and traders in the region.
The delegation—comprising senior representatives from 12 leading trade associations—presented a cluster development proposal for Zaveri Bazaar, one of India’s most prominent gold trading districts. Dhiraj Rajmal Baldia outlined the plan, which calls for upgrades to parking facilities, tighter traffic management, and enhanced security measures for traders and visitors.
Industry executives used the meeting to flag ongoing challenges, including market volatility, while emphasizing opportunities for growth. They said targeted policy intervention could help stabilize the sector and sustain momentum. Saiyam Mehra presented the GJCs’ position, while Surendra Mehta detailed concerns raised by the India Bullion and Jewellers Association, along with recommendations for reform.
Chavan signaled support for the initiative and urged the industry to submit detailed project reports to accelerate execution, according to people familiar with the discussions.
Present at the meeting were Saiyam Mehra, IPC, GJC, Vijay Agrawal, National Governing Board Director, IBJA & Director, World Silver Council; Kanayaa Kakkad, Jt Treasurer-IBJA;Surendra Mehta, National Secretary, IBJA; and the Directors of GJC – Madan Kothari, Sahil Mehra, Nilesh Shobhawat. Dhiraj Rajmal Baldia, Founder, Jain Bullion Gem & Jewellery Federation (JBGJF); Mahesh Bafna, President; Anil Pamecha, Director of MWGJA; Bharat Kothari, Director; and Anil Jain, Secretary from Shri Mumbadevi Dagina Bazaar Association; Rahul Desai, CEO & MD, IIG; Hausila Prasad Gupta, Dhanji Street Trade Association; Kishan Dagalia, Founder President; Sundarlal Sankhla, President; Rakesh Agarwal, VP; and Rajeev Agarwal, Secretary of Shri Sarafa Welfare Association, Mumbai.
Akshaya Tritiya 2026: Industry Outlook and Expectations from India’s Jewellery Trade
Zaveri Bazaar Cluster Development Proposal Addresses Parking, Traffic Mobility, Safety, and Security For Citizens and Traders
Indian bullion Market Experienced A Notable Recovery, Trimming Losses Triggered After The Ceasefire Headlines
Zaveri Bazaar Cluster Development Proposal Addresses Parking, Traffic Mobility, Safety, and Security For Citizens and Traders
Indian bullion Market Experienced A Notable Recovery, Trimming Losses Triggered After The Ceasefire Headlines
Akshaya Tritiya 2026: Industry Outlook and Expectations from India’s Jewellery Trade
-
National News1 day agoZaveri Bazaar Cluster Development Proposal Addresses Parking, Traffic Mobility, Safety, and Security For Citizens and Traders
-
National News1 day agoIndian bullion Market Experienced A Notable Recovery, Trimming Losses Triggered After The Ceasefire Headlines
-
JB Insights1 day agoAkshaya Tritiya 2026: Industry Outlook and Expectations from India’s Jewellery Trade
-
BrandBuzz2 days agoVummidi Bangaru Jewellers Auspicious Akshaya Tritiya Campaign
JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.