**Summary:**
This circular, FIDD.CO.FSD.BC.No.0805/05.01.02025-26, issued by the Reserve Bank of India (RBI) on July 11, 2025, clarifies the regulations concerning loans against gold and silver collateral, specifically regarding voluntary pledges for agriculture and Micro, Small, and Medium Enterprise (MSME) loans.
The circular addresses concerns related to the interpretation of existing guidelines on collateral-free agricultural loans (FIDD.CO.FSD.BC.No.1005/05.01.02024-25 dated December 6, 2024) and lending to the MSME sector (Master Direction FIDD.MSME & NFS.1206/02.31/2017-18 dated July 24, 2017, updated as on June 11, 2024). It also refers to the Reserve Bank of India Lending Against Gold and Silver Collateral Directions, 2025, DOR.CRE.REC.2621/01.023/2025-26, dated June 6, 2025.
The RBI clarifies that loans sanctioned by banks against the voluntary pledge of gold and silver, up to the stipulated collateral-free limit defined in the aforementioned circular and master direction, will not be considered a violation of the collateral-free lending guidelines. This clarification applies to all Scheduled Commercial Banks (including Regional Rural Banks and Small Finance Banks) and all State Cooperative Banks and District Central Cooperative Banks.
For further information, contact R. Giridharan, Chief General Manager, Financial Inclusion Development Department, Central Office, Reserve Bank of India, 10th Floor, C.O. Building, Post Box No. 10014, Mumbai – 400 001. Tel. No: 91-22-22661000. Fax No: 91-22-22621011/22610948/22610943. Email ID: cgmincfidd@rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the primary regulator for banks in India.
All Scheduled Commercial Banks: Refers to all commercial banks in India that are listed in the Second Schedule of the Reserve Bank of India Act, 1934.
Regional Rural Banks: Regional Rural Banks are financial institutions in India operating at a regional level to provide credit and banking facilities primarily to rural areas.
Small Finance Banks: Small Finance Banks are a type of niche bank in India licensed by the Reserve Bank of India to further financial inclusion by primarily undertaking basic banking activities to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries, and unorganized sector entities.
All State Cooperative Banks: State Cooperative Banks are the apex cooperative banks in a state of India.
District Central Cooperative Banks: District Central Cooperative Banks operate at the district level in India.
MSME: Micro, Small and Medium Enterprises
Mumbai, Maharashtra: The location of the Central Office of the Financial Inclusion Development Department of the Reserve Bank of India.
भारतीय �रज़वर् बैंक
______________________ RESERVE BANK OF INDIA_______________________
www.rbi.org.in
RBI/2025-2026/66
FIDD.CO.FSD.BC.No.08/05.05.010/2025-26 July 11, 2025
The Chairman / Managing Director / Chief Executive Officer
All Scheduled Commercial Banks
(including Regional Rural Banks and Small Finance Banks)
All State Co-operative Banks and District Central Co-operative Banks
Madam/Sir,
Lending Against Gold and Silver Collateral - Voluntary Pledge of Gold and Silver
as Collateral for Agriculture and MSME Loans
Please refer to our circular FIDD.CO.FSD.BC.No.10/05.05.010/2024-25 dated
December 6, 2024 on Credit Flow to Agriculture – Collateral free agricultural loans,
and Para 4.1 of the Master Direction FIDD.MSME & NFS.12/06.02.31/2017-18 dated
July 24, 2017 on Lending to Micro, Small & Medium Enterprises (MSME) Sector
(Updated as on June 11, 2024)1.
2. Reference is also invited to the Reserve Bank of India (Lending Against Gold and
Silver Collateral) Directions, 2025, DOR.CRE.REC.26/21.01.023/2025-26, dated June
6, 2025.
3. In this regard, it is clarified that loans against voluntary pledge of Gold and Silver as
collateral by borrowers, sanctioned by the banks upto the collateral free limit, as
1 Not applicable to Regional Rural Banks, State Co-operative Banks and District Central Co-operative
Banks
िवत् तीय समावेशन और िवकास िवभाग,क��ीय कायार्लय, 10वीमंिजल, क��ीय कायार्लय भवन, पो.बा.सं.10014, मुंबई 400 001
टेलीफोन /Tel.No: 91-22-22661000 फैक्स/FaxNo: 91-22-22621011/22610948/22610943
ई-मेल/ Email ID:cgmincfidd@rbi.org.in
Financial Inclusion & Development Department, Central Office, 10thFloor, C.O. Building, Post Box No.10014, Mumbai 400 001
�हदंी आसान है, इसका �योग बढ़ाइये
“चतेावनी�रज़व र्बक� �ारा - :मले , डाक, एसएमएस या फोन कॉल के ज�रए �कसी क� भी व्य ि�गत जानकारी जसै ेबक� के खात ेका ब्य ौरा, पासवडर् आ�द
नह� मागंी जाती है। यह धन रखन ेया देन ेका �स्त ाव भी नह� करता है। ऐस े�स्त ाव� का �कसी भी तरीके स ेजवाब मत दीिजए।"
Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details,
passwords, etc. It never keeps or offers funds to anyone. Please do not respond in any manner to such offers.covered under the Circular / Master Direction referred to in para 1 above, will not be
construed as a violation of the above-mentioned guidelines as regards such collateral.
Yours faithfully,
(R Giridharan)
Chief General Manager
2