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RBI Sees No Systemic Risk From Gold Loans After Review

Low loan-to-value ratios across lenders leave buffers against recent gold‑price swings.

Overview

  • Governor Sanjay Malhotra said the central bank is "very comfortable" with gold-loan exposures and sees no cause for concern.
  • Following its bi‑monthly policy, the RBI reviewed gold, MSME and personal loan books and reported good asset quality with low slippages.
  • Loan‑to‑value levels remain well below the 85% cap, with system‑wide LTV under 70% according to Deputy Governor Swaminathan J.
  • Credit against gold jewellery grew about 127.6% year‑on‑year in December 2025 to Rs 3.82 trillion, reflecting a shift from unsecured to collateralised lending.
  • Recent gold‑price volatility, including a sharp drop in recent days, triggered scrutiny, but the RBI said current lending buffers mitigate near‑term risks.