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
World Silver Survey 2026: A Transformative Era For The Silver Market, Characterized By Extreme Price Volatility
Landmark Year Where Supply-Demand Imbalances Finally Triggered Explosive Price Action
The World Silver Survey 2026 details a transformative era for the silver market, characterized by extreme price volatility, a shifting industrial landscape, and a definitive end to the era of “unlimited liquidity.” After years of structural deficits, 2025 emerged as a landmark year where supply-demand imbalances finally triggered explosive price action.
Price Performance and Market Dynamics
Silver witnessed a spectacular ascent in 2025, surging from under $29/oz to a December peak of $84/oz. This momentum culminated in an all-time record of $121.60/oz in January 2026, before a hawkish Federal Reserve pivot and geopolitical conflict in Iran induced a sharp correction. Despite this volatility, the gold-to-silver ratio compressed significantly, reaching a decade-low of 55:1 by late 2025, signaling silver’s outperformance relative to gold.
Supply: Record Margins and Recycling
Global mine production rose 3% to 846.6 Moz in 2025. Growth was fueled by high-grade ramp-ups in Chile, Peru, and Russia, offsetting a 5% decline in Mexico caused by regulatory shifts and falling grades. Notably, primary silver mines now account for only 26% of global supply, leaving the market increasingly dependent on by-product output from copper and gold operations.
While production rose, the real story lay in profitability. Record gold prices boosted by-product credits, driving silver miners’ All-In Sustaining Costs (AISC) down to $12.21/oz. This created a staggering 75% increase in profit margins, with nearly the entire primary silver sector remaining profitable. Additionally, recycling hit a 13-year high of 197.6 Moz, though refinery bottlenecks limited its full impact.
Demand: A Tale of Two Sectors
For the first time since the pandemic, total silver demand contracted by 2% to 1,130.6 Moz. This was driven by two main factors:
- Industrial Thrifting: Industrial demand fell 3%, primarily due to the solar industry. As silver costs spiked to 20% of cell manufacturing costs, manufacturers accelerated “thrifting” technologies, reducing silver loading in photovoltaic (PV) cells.
- Price Sensitivity: High prices crushed jewelry and silverware demand, particularly in India, where fabrication dropped 20%.
Conversely, physical investment remained robust. Demand for coins and bars rose 14%, led by a massive 33% surge in India and a doubling of investment demand in China.
The Liquidity Squeeze and 2026 Outlook
A critical theme of the report is the structural fragility of inventories. In October 2025, a convergence of ETP inflows and physical demand led to a liquidity squeeze in London, sending overnight lease rates to 200%. With London’s non-ETP stocks hitting record lows, the market proved it no longer has a “buffer” for sudden demand spikes.
Looking ahead to 2026, Metals Focus projects a sixth consecutive deficit of 46.3 Moz. While industrial and jewelry demand may continue to soften under price pressure, silver’s new status as a U.S. Critical Mineral and its growing role in AI data centers provide a strong floor. The market remains in a state of “permanent deficit,” where cumulative shortfalls (totaling 716 Moz over five years) ensure that silver remains a high-stakes, strategically vital asset.
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