New Delhi, March 23 The Association of Gold Loan Companies (AGLOC) has sought a six-month deferral of the Reserve Bank of India's (RBI) revised guidelines on lending against gold and silver collateral, scheduled for implementation by April 1, 2026, citing emerging geopolitical uncertainty and risks to credit access.
The revised framework, scheduled for implementation on or before April 1, 2026, aims to strengthen regulatory frameworks and promote responsible lending practices.
In representations to the RBI, the Ministry of Finance, and the Department of Financial Services, given the current environment and the need to ensure continued credit access, a calibrated deferral would enable a smoother and more effective implementation.
AGLOC stated that the global environment remains marked by heightened uncertainty, particularly due to the evolving conflict in the Middle East, which could disrupt energy and fuel supply chains, trigger inflationary pressures, and impact the cash flows of households and small businesses.
Given the current environment, it said, there is a temporary mismatch in customer cash flows driven by disruptions in business activity, particularly in segments linked to fuel, LPG, and logistics, along with increased costs of agricultural inputs affecting borrowers in the agricultural sector.
A calibrated and phased approach to implementation would help ensure a smoother transition while maintaining uninterrupted access to credit for these segments, it said.
It further added that such conditions are likely to disproportionately affect the lower and middle-income segments that rely on timely access to formal credit.
It also stated that gold loans play a counter-cyclical role in providing immediate liquidity, supporting consumption during income volatility, and enabling continuity for small and informal sector businesses.
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