Take Care Of Small Gold Loan Borrowers: DFS


Needs Of Borrowers Below Rs2 Lakh Should Not Be Affected; guidelines may be suitable for implementation from 1st January 2026 only: RBI Advised by DFS


Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman.

FinTech BizNews Service

Mumbai, May 30, 2025: Draft Directions on Lending Against Gold Collateral issued by the RBI have been examined by the Department of Financial Services (DFS) of the government of India under guidance of Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman.

The DFS has given suggestions to the RBI to ensure that the requirements of the small gold loan borrowers are not adversely affected. 

The DFS 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. Further, The DFS has suggested that small ticket borrowers below Rs2 lakh may be excluded from the requirements of these proposed directions to ensure timely and speedy disbursement of loans for such small ticket borrowers. 

The 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 before finalizing the Directions on the same. The suggestions have been duly forwarded to the RBI.

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