New Delhi: The Finance Ministry said on friday it has advised that the reserve bank of india (RBI) should exclude small borrowers of up to Rs 2 lakh from the provisions of its draft instructions on lending in opposition to gold collateral.

The Finance Ministry has also cautioned that the implementation of the guidelines be postponed to a subsequent year.

"The draft guidelines on lending against gold collateral issued via the RBI were examined by the branch of financial offerings (DFS) underneath the guidance of Finance minister Nirmala Sitharaman. The DFS has given pointers to the RBI to make certain that the requirements of the small gold loan debtors aren't adversely affected," the Finance Ministry stated in an assertion on X.

DFS has also stated that such tips will need time to be put in force at the sector stage and consequently can be suitable for implementation from january 1, 2026, handiest, the declaration stated.

Moreover, DFS has advised that borrowers with loans below Rs 2 lakh may be exempt from the requirements of these proposed guidelines, ensuring the timely and speedy disbursement of loans for such small-price-ticket debtors, the assertion explained.

"RBI is reviewing the remarks acquired on the draft suggestions. It's miles anticipated that issues raised with the aid of diverse stakeholders, in addition to the remarks obtained from the public, might be duly taken into consideration by the RBI before finalizing the directions on the same. The suggestions had been duly forwarded to the RBI," the declaration added.

Shares of muthoot Finance and Manappuram rose at the finmin's comments, buying and selling at Rs 2,136.10 and Rs 233.14 apiece, up 3.07 percent and 0.57 percent, respectively.

Earlier in April, the RBI issued draft suggestions geared toward organizing uniform guidelines and policies for obtaining gold loans from banks and nbfcs.

However, the draft rules imposed a few restrictions concerning the kind of gold that is eligible as collateral and the maximum loan amount a financial institution or NBFC can extend.

The RBI had observed some shortcomings, such as susceptible loan appraisal mechanisms, poor monitoring of the quit use of price range, and a lack of transparency at some point of gold auctions after default. The draft suggestions at the moment are intended to harmonise norms throughout one-of-a-kind varieties of lenders, at the same time as additionally reflecting their respective risk-bearing capacities.