Lending Against Gold and Silver Collateral – RBI Circulars (July 11, 2025)

Vocabulary flashcards covering key terms and references from the RBI circular on Lending Against Gold and Silver Collateral for Agriculture and MSME loans.

Reserve Bank of India (RBI)

India's central bank that regulates monetary policy and oversees banks and financial institutions; issues circulars like the lending against gold/silver collateral guidance.

Lending Against Gold and Silver Collateral

Loans secured by borrowers’ pledged gold and/or silver as collateral, sanctioned up to a collateral-free limit.

Voluntary Pledge

Borrowers’ voluntary pledge of gold and silver as collateral for loans to agriculture and MSME sectors.

Collateral-Free Limit

Maximum loan amount that can be sanctioned against a voluntary pledge without additional collateral.

Agriculture and MSME Loans

Loans aimed at farming activities and micro, small, and medium enterprises.

FIDD.CO.FSD.BC.No.08/05.05.010/2025-26

RBI circular (July 11, 2025) on lending against gold/silver collateral with voluntary pledge for agriculture and MSME loans.

FIDD.CO.FSD.BC.No.10/05.05.010/2024-25

Earlier RBI circular (Dec 6, 2024) on Credit Flow to Agriculture – Collateral free agricultural loans.

DOR.CRE.REC.26/21.01.023/2025-26

RBI Directions titled Lending Against Gold and Silver Collateral Directions, 2025 (dated June 6, 2025).

Master Direction FIDD.MSME & NFS.12/06.02.31/2017-18

Master directions on Lending to Micro, Small & Medium Enterprises (MSME) Sector; updated as on June 11, 2024.

Not applicable to certain banks

Guidelines do not apply to Regional Rural Banks (RRBs), State Co-operative Banks, and District Central Co-operative Banks.

Caution: Personal information

RBI warns it never sends mails, SMSs or makes calls asking for bank account details, passwords, or other personal data.

[e-mail]

Email contact for RBI’s Financial Inclusion & Development Department.

Mumbai address (FIDD)”

Financial Inclusion & Development Department, Central Office, 10th Floor, C.O. Building, Mumbai 400 001 (contact details in the circular).