Latest news with #LendingAgainstGoldCollateral
New Indian Express
4 days ago
- Business
- New Indian Express
Centre urges RBI to shield small gold loan borrowers; Tamil Nadu CM Stalin welcomes move
CHENNAI: Following concerns raised, mainly from Tamil Nadu, that the proposed norms for gold loans issued by the Reserve Bank of India will seriously affect small borrowers, the Department of Financial Services (DFS) functioning under the Union Ministry of Finance on Friday said that it has suggested to the RBI to ensure that the requirements of small gold loan borrowers are not adversely affected. Leaders of parties across the political spectrum in Tamil Nadu had expressed concerns over the draft norms. Chief Minister MK Stalin on Wednesday wrote a letter to Union Finance Minister Nirmala Sitharaman, requesting her urgent intervention as the rules would disrupt access to credit, especially for farmers, and affect rural economy. He objected in particular to the rule to prohibit banks from accepting gold as security for agricultural loans of up to Rs 2 lakh. A statement from DFS on Friday said the new guidelines — Draft Directions on Lending Against Gold Collateral — will need time to be implemented at the field level and hence may be suitable for implementation only from January 1, 2026. It further said it 'has suggested that small ticket borrowers below `2 lakh may be excluded from the requirements of these proposed directions to ensure timely and speedy disbursement of loans for such small borrowers'. Welcoming the announcement, CM Stalin said protecting the interests of small borrowers and ensuring timely and accessible credit to them have been his consistent demands. The CM also emphasised that such policies, having a significant impact on the poor, should be arrived at after prior consultation with states.
Time of India
5 days ago
- Business
- Time of India
FinMin bats for exemption of small borrowers in RBI's gold loan guidelines
The finance ministry has suggested exempting small-ticket borrowers, below Rs 2 lakh, from the Reserve Bank of India (RBI)'s draft guidelines on Lending Against Gold Collateral and recommended that the implementation of new rules start from January 1, 2026. The RBI's draft guidelines include reducing the loan-to-value (LTV) ratio from 80% to 75%, potentially lowering loan amounts available against gold, among other measures to harmonise regulations, enhance transparency, and mitigate risks in gold-backed lending. In a post on X, the finance ministry said that Draft Directions on Lending Against Gold Collateral issued by the RBI have been examined by the Department of Financial Services in the finance ministry under the guidance of the finance minister Nirmala Sitharaman , and suggestions have been made to the RBI to ensure that the requirements of the small gold loan borrowers are not adversely affected. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Encontre voos low-cost Voos | Anúncios de Pesquisa Saiba Mais Undo The department of financial services 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, the finance ministry said in its post. The department of financial services has also stated that such guidelines will need time to implement at the field level and hence may be suitable for implementation only from January 1, 2026, it noted in its post, adding that the suggestions have been forwarded to the RBI. Live Events 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 finalising the directions on the same, the finance ministry said in its post, adding that the RBI is reviewing the feedback received on the draft guidelines.
