RBI has issued comprehensive directions for lending against gold and silver collateral, to establish a harmonized regulatory framework across all regulated entities (REs) such as commercial banks, co- operative banks, and NBFCs. The key provisions include detailed credit assessment for loans above Rs 2.5 lakh, guidelines for loan renewals and top-ups, and strict restrictions on lending against primary gold/silver or re-pledging collateral. The policy outlines maximum loan- to-value (LTV) ratios, varying from 85% for loans up to Rs 2.5 lakh to 75% for loans exceeding Rs 5 lakh, which must be maintained throughout the loan tenor. Other important aspects covered are the standardization of assaying and valuation procedures, transparency in auction processes, and compensation mechanisms for borrowers in cases of collateral loss or damage.