RBI Issues New Rules on Gold Loan Defaults
Posted on: 11/Apr/2026 10:15:48 AM - No. of views : (2959)
The Reserve Bank of India (RBI) has introduced updated guidelines regarding gold loans pledged with banks.
Under the new rules, if borrowers fail to pay interest on time, banks will have the authority to auction the pledged gold.
Earlier, banks used to send multiple notices before initiating auction proceedings. However, as per the revised norms, once the loan tenure ends and the required notice period is completed, banks can proceed with auction actions without repeated notices.
This move is aimed at streamlining recovery processes while ensuring that borrowers are given adequate notice before any action is taken.
