RBI’s key decision to allow all commercial banks and non-banking financial institutions (NBFCs) to take loans against silver is a key decision. Silver is not only used in jewellery but also in the industrial, solar and medical sectors. That is why the price of silver has increased drastically.
BY RAJA PENTAPATI . AP BUREAU CHIEF
National News
Amravati October 26 (Bharat News)AP
The RBI has taken a key decision to allow all commercial banks and non-banking financial institutions (NBFCS) to take loans against silver.
With the price of silver in the domestic market reaching Rs 1.70 lakh per kg, banks will now be able to provide collateral loans against silver items The RBI has issued orders. The new guidelines will come into effect from April 1, 2026.
According to the latest RBI orders, commercial banks and non-banking financial institutions (NBFCS) can grant loans against silver jewelry, ornaments and coins. However, it has been clarified that loans cannot be given against silver bars and ETFs.
A person can get a loan of up to Rs 10 lakh by pledging a maximum of 10 kg of silver. Silver coins weighing up to 500 grams are also allowed to be pledged. The loan amount will be decided based on the current market value of silver, it said.
Currently, the price of silver in the domestic market is at Rs 1.70 lakh per kg. It is known that it crossed the Rs 2 lakh mark a few months ago.
Silver is widely used not only in jewellery but also in industrial sectors. The rates have increased significantly due to the increase in the use of silver in solar panels, electric batteries, electronics, conductors, medical sector, water purification, photography and other sectors.
This decision taken by the RBI in the wake of the growth of the silver market is considered a key turning point in the economic sector.
Bharat News Andhra Pradesh
