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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

RBI issues RBI (Small Finance Banks - Credit Facilities) Amendment Directions, 2025

04-Dec-2025 | RBI/2025-26/125 DOR.CRE.REC.338/07-01-002/2025-26

RBI has issued RBI (Small Finance Banks - Credit Facilities) Amendment Directions, 2025 effective from 01st April 2026 or on the date of adoption by banks. Key Highlights: 1. New definitions are added: a. GMS-linked GML (Gold Metal Loans) - loans given using gold from the Gold Monetization Scheme, 2025 (GMS), repayable in gold or cash. b. Import-linked GML - loans given using imported gold, repayable only in cash. 2. The old Chapter V on GML has been deleted and replaced with a new, updated Chapter V(A). 3. Only nominated banks (importing gold) and designated banks (under GMS) can offer GML, mainly to jewellers and MMTC (for India Gold Coins). 4. Banks must have a clear GML lending and risk policy, including limits, due diligence requirements, daily valuation of gold exposure, and monitoring of how lent gold is used. 5. GML must follow normal capital adequacy and prudential norms, and borrowers cannot be made liable to gold suppliers or GMS depositors. 6. Repayment rules: a. Exporters follow timelines under the Foreign Trade Policy. b. Others can be given repayment periods up to 270 days. c. Repayment is in INR, except GMS-linked GML where repayment in gold is allowed under strict conditions. For more information, please refer to the attached document.

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