RBI News 2025- RBI made a big change in the rules related to loans, loan takers will get relief
RBI - If you or someone you know ever takes a loan when needed, then there is an important news for you. Actually, recently the Reserve Bank has made some new rules related to loans, but now the Finance Ministry has raised questions on these.... Let us know about it in detail in the news below-
News, Digital Desk- ( Gold Loan Rules) RBI has made new rules for gold loan, over which the Finance Ministry has expressed concern. The ministry believes that these rules can create problems for small and rural borrowers.
Therefore, the ministry has requested RBI (RBI Update) to give more time to implement the rules and provide relief to small borrowers.
How much does RBI spend to print currency notes, told the truth itself
The Department of Financial Services (DFS) under the Ministry of Finance has sent its suggestions to the Reserve Bank of India on the draft rules prepared for gold loans. These suggestions have been made especially to protect the interests of small loan takers.
What was said by DFS?
DFS has suggested to RBI that gold loans less than Rs 2 lakh should be exempted from the new rules. This will provide quick and easy gold loans to small farmers, shopkeepers and the needy. This move will provide relief to those who pledge their gold for small amounts, which will help them get easy financial assistance.
New rules may come into effect from January 1, 2026-
DFS has recommended RBI to implement the new rules by January 1, 2026. This will give banks and NBFCs enough time to implement the necessary reforms and changes.
These suggestions have been prepared by the Finance Ministry under the guidance of Union Finance Minister Nirmala Sitharaman and have been sent to RBI.
Why did RBI issue new rules?
RBI had issued draft rules regarding gold loans in April 2025. Recently a joint review was done in which many irregularities came to the fore.
Loose monitoring of loan-to-value (LTV) ratio.
Flaws in risk valuation.
Misuse of agents
The auction process is not transparent
To plug these loopholes, RBI plans to issue strict guidelines to banks and NBFCs.
Main points of draft rules-
For gold loans, the LTV (loan-to-value) ratio, i.e. the loan amount, including interest, should not exceed 75% of the total value of gold over the total loan period.
For loans with bullet repayment, this amount may be limited to 55-60%, from 65-68% earlier. EMI-based loans, where the principal is repaid quickly, may get a slightly higher LTV. The share of gold loans in the total loan portfolio of banks will be decided on a periodic review basis.
Now what?
RBI is reviewing the feedback received from the public and other stakeholders, including the suggestions of the DFS. The final rules will be decided after considering all the views, which can provide great relief to small borrowers, especially if the suggestions of DFS are accepted.