RBI directed lending against gold collateral
Gold loan now availability increases from 75% to 85% Recently, in the RBI Directions 2025, the Reserve Bank of India announced the direction in the context of Lending Against Gold and Silver Collateral. RBI said, gold or silver accepted as collateral shall be valued based on the reference price corresponding to its actual purity (caratage). For this purpose, the lower of (a) the average closing price for gold or silver, as the case may be, of that specific purity over the preceding 30 days, or (b) the closing price for gold or silver, as the case may be, of that specific purity on the preceding day, as published either by the India Bullion and Jewellers Association Ltd. (IBJA). RBI said further that, IBJA rate or by a commodity exchange regulated by the Securities and Exchange Board of India (SEBI) shall be used. If price information for the specific purity is not directly available, the lender shall use the published price available for the nearest avai...