The Reserve Bank of India (RBI) will allow borrowers to pledge silver jewellery, ornaments, or coins as collateral for loans beginning April 1, 2026, as part of revised lending guidelines for commercial banks, non-banking financial companies, cooperative banks, and housing finance institutions. These changes are designed to improve access to credit, particularly for those who traditionally rely on gold-backed loans, while also standardising protections for borrowers and ensuring clearer accountability among lenders. Loans against primary silver, such as bullion, will remain excluded to contain speculative activities in the precious metals market. Advertisement

According to industry experts, this policy is anticipated to help low-income households and small businesses, especially in rural

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