National News

RBI tightens gold loans norms; proposes LTV ratio at 75% of pledged gold’s worth

Published

1 year ago

April 10, 2025

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

MMTC-PAMP Unveils The Radha Krishna 50g Silver Bar; A Timeless Celebration Of Divine Love and Devotion

This Year, Bangkok Gems Will Place Greater Emphasis On Design and Value Creation, With The Designer Zone, Collaborations With merging Talent, Business Matching, Seminars, and Industry Networking Opportunities.

Published

9 minutes ago

August 26, 2026

JewelBuzz Spread The Buzz

MMTC-PAMP, India’s only London Bullion Market Association (LBMA) Good Delivery gold and silver refiner, has announced the unveiling of its latest offering, the Radha Krishna 50 grams Silver Bar. Crafted in 999.9+ purest silver, the all-new bar is inspired by the eternal bond of Lord Krishna and Radha. The collectible embodies the deep meaning of love, devotion, harmony and spiritual peace, blending India’s rich cultural heritage with exquisite craftsmanship.

The Radha Krishna Silver Bar from the house of MMTC-PAMP is a visual celebration of one of the most cherished symbols of divine love in Indian tradition. The obverse depicts Radha and Krishna sitting together in a serene garden under an ornate temple arch, representing unconditional love, peace and everlasting companionship. Krishna’s flute showcases divine music, while Radha represents devotion. The floral detailing adds richness, further enhancing the artwork and adding depth, vibrancy and a premium aesthetic to the design of the bar.

The back of the product shows an elegant decorative frame inspired by traditional Indian temple architecture. Delicate lotus vines, hanging temple bells, peacock feathers and Krishna’s flute with a jewelled crown surround the product specifications, creating an elaborate composition that reflects the timeless beauty of Indian art and spirituality.

Speaking on the launch Samit Guha, Managing Director & CEO, MMTC-PAMP, said:

“The Radha Krishna Silver Bar is a celebration of love, devotion and India’s rich artistic heritage. Radha and Krishna represent a timeless bond that continues to inspire generations through its message of love, harmony and spiritual connection. Through intricate craftsmanship and the beauty of pure silver, we have brought these emotions to life. We are delighted to offer our consumers a collectible that goes beyond its precious metal value to become a meaningful keepsake of faith, love and tradition.”

Crafted in 50 grams of 999.9+ purest silver, the bar features a premium proof-like finish with high-definition colour printing, bringing its intricate artwork to life. It is presented in MMTC-PAMP’s tamper-proof Assay Certified Packaging and is individually serialized to ensure authenticity.

The Radha Krishna Silver Bar makes a meaningful gift for special occasions and as a collectible, celebrating divine love while holding the lasting value of silver.

Every MMTC-PAMP product undergoes a rigorous purification process to guarantee the highest purity and quality. Additionally, every gold and silver product from MMTC-PAMP comes with positive weight tolerance, ensuring customers receive more than the stated weight and maximum value with every purchase.

With the Radha Krishna Silver Bar, MMTC-PAMP continues to bring together India’s spiritual traditions and precious metal artistry, creating meaningful products for collectors, devotees and those seeking an auspicious gift for special occasions.