Chennai: The Finance Ministry has proposed exemption of gold loan below Rs 2 lakh from RBI’s draft guidelines. It has asked RBI to take time in the implementation of draft gold loan guidelines and address the concerns of small borrowers. The Finance Ministry “has given suggestions to the RBI to ensure that the requirements of the small gold loan borrowers are not adversely affected,” it said on X. The ministry has suggested that small ticket borrowers below Rs 2 lakh may be excluded from the requirements of these proposed directions to ensure timely and speedy disbursement of loans for such small ticket borrowers. Further, it has also stated that such guidelines will need time to implement at the field level and hence may be suitable for implementation from 1st January 2026 only. RBI is reviewing the feedback received on the draft guidelines. It is expected that concerns raised by various stakeholders, as well as the feedback received from the public, will be duly considered by the RBI, the ministry said. Various stakeholders and some of the state governments, including Tamil Nadu, had raised concerns about the new guidelines proposed by the RBI and its impact on small ticket borrowings. According to the industry, most borrowers pledge legacy gold with no purchase receipts. While the draft allows for a self-declaration of ownership, there is concern that branches may reject loans due to lack of proper documentation. It also affects women borrowers, who may not be the legal purchasers. Mandatory hallmarking requirements may delay loan processing and deprive quick access to cash during emergencies. Purity certification charges add to the costs. Further, limiting accepted collateral to certain types of gold jewellery and standard coins may exclude many rural borrowers who possess traditional or non-standard forms of gold.
Source link
