On 4-12-2025, the Reserve Bank of India (‘RBI’) issued a notification announcing amendments to the Gold Metal Loan (‘GML’) Scheme. These changes mark a significant step toward consolidating regulations, addressing prudential gaps, and enhancing operational flexibility for banks.
Key Takeaways of Gold Metal Loan Scheme:
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Earlier, on 29-9-2025, the RBI had released the draft RBI (Gold Metal Loans) Directions, 20251 for stakeholder consultation.
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Objectives of the draft were, to:
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Consolidate existing GML-related regulations.
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Strengthen prudential aspects by filling regulatory gaps.
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Expand the scope of the GML Scheme.
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Provide banks with greater freedom in framing their GML policies.
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The Feedback received guided in the incorporation of final framework.
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To ensure a streamlined and harmonised set of regulations, RBI has issued the following Amendment Directions:
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Reserve Bank of India (Commercial Banks — Credit Facilities) Amendment Directions, 2025
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Reserve Bank of India (Small Finance Banks — Credit Facilities) Amendment Directions, 2025
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RBI’s this move is expected to benefit from simplified access to gold loans, reduced compliance burdens, and improved oversight.
1. Database — Historical Data — Reserve Bank of India