RBI’s Lending Against Gold and Silver Collateral Directions, 2025

Current Context: The Reserve Bank of India (RBI) announced on 7 November 2025 the “Lending Against Gold and Silver Collateral Directions, 2025.”

• This new rule, effective from 1 April 2026, allows loans against silver ornaments and coins for the first time.
• Borrowers can pledge up to 10 kg of silver ornaments and 500 g of silver coins as collateral.
• The facility will be available through banks, co‑operative banks, NBFCs, and housing finance companies.
• Loans against bullion, ETFs, or silver mutual funds remain prohibited to prevent misuse.
• The move expands secured credit access, especially for rural households and small businesses holding silver.
• It marks a historic step in financial inclusion, diversifying collateral options beyond gold in India’s credit system.

Question:

Q.1 What is the maximum allowed limit for pledging silver ornaments under RBI’s new rule Lending Against Gold and Silver Collateral?
a) 5 kilograms
b) 10 kilograms
c) 20 kilograms
d) 50 kilograms

Answer: b) Borrowers can pledge up to 10 kg of silver ornaments and 500 g of silver coins as collateral.