Final gold loan regulations to be out today or by Monday: RBI Governor Sanjay Malhotra

Reserve Bank of India (RBI) Governor Sanjay Malhotra stated on Friday that the final regulations on gold loans will be released later today or by Monday. The announcement follows the release of draft guidelines last month aimed at tightening rules for gold-backed lending, which has surged amid record-high gold prices.

The Finance Ministry has earlier suggested exempting gold loans below ₹2 lakh from the stricter rules and recommended implementing the new framework starting January 1, 2026, to allow smoother transition for lenders and borrowers. The proposed relief came after Tamil Nadu Chief Minister MK Stalin urged Finance Minister Nirmala Sitharaman to reconsider the impact on low- and middle-income households’ access to credit.

The update came during the RBI’s Monetary Policy Committee (MPC) meeting, where the six-member panel cut the repo rate by 50 basis points to 5.5%, marking the third consecutive rate cut. Governor Malhotra also announced a revised CPI inflation outlook of 3.7% for FY26, down from the earlier projection of 4%. Meanwhile, GDP growth for the current fiscal has been retained at 6.5%, despite global uncertainties and weather-related challenges.

The repo rate cut is expected to lead to a reduction in external benchmark lending rates (EBLR) across banks, mirroring similar trends seen in February 2025. The decision also bodes well for the bond market, with lower interest rates typically pushing bond prices higher.

With gold prices currently at ₹95,760 per 10 grams for 24-carat and ₹87,780 for 22-carat, the RBI is seeking to bring structure to a rapidly growing segment and address rising non-performing assets in the absence of clear regulations.

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