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 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

¹ Not applicable to Regional Rural Banks, State Co-operative Banks and District Central Co-operative Banks