RBI Expands Gold Metal Loan Access for More Jewellers Under 2026 Rules

The Reserve Bank of India has released its final guidelines on gold metal loans, expanding the range of businesses permitted to access these facilities.  

The revised rules, which come into effect from April 1, 2026, are part of amendments to the Master Direction on Import of Goods and Services and the Gold Monetisation Scheme.  

The changes aim to improve liquidity for jewellers and strengthen compliance and supervision in the gold lending ecosystem. 

Key Development: Wider Eligibility for GML 

Under the updated framework, nominated banks importing gold may extend import linked GML to entities involved in manufacturing or selling jewellery in domestic or export markets. Jewellers who are not manufacturers themselves may also borrow, provided they outsource production on a job work basis to registered artisans, goldsmiths or manufacturing firms. 

The RBI stated: “Nominated banks importing gold may extend import-linked GML to entities who either manufacture and or sell jewellery. Provided that, jewellers who are not manufacturers themselves, may borrow under GML only for outsourcing their manufacturing.” 

Statements and Additional Provisions Under GMS 

The central bank has also permitted designated banks implementing the Gold Monetisation Scheme to offer GMS linked GML to jewellers and to MMTC specifically for minting India Gold Coins. 

Banks must create lending and risk management policies detailing borrower categories, gold quantity limits per borrower, and overall exposure ceilings.  

They must also outline due diligence requirements to assess eligibility and credit needs. GML exposures will follow capital adequacy and prudential norms similar to other loan products. 

Read More: RBI Decided to Cut Repo Rate by 0.25% to 5.25%: Retains Policy Stance as Neutral! 

Conclusion 

The RBI’s revised GML framework significantly broadens access to gold based credit for India’s jewellery sector, while strengthening monitoring, risk management and valuation practices. With clearer rules for manufacturers, outsourced production units and exporters, the updated guidelines are expected to streamline working capital flows and support responsible gold market operations. 

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