The Reserve Bank of India (RBI) has announced major changes in its customer-related rules.
These changes will benefit people across the country by making loan repayment easier, EMIs cheaper, and credit more accessible.
One of the biggest benefits will go to gold loan borrowers, as the RBI has relaxed several rules for them.
The new rules will come into effect from October 1st, while four of them are still in the proposal stage.
The RBI has invited feedback from stakeholders before final implementation.
Cheaper EMIs and More Flexibility for Borrowers
The most important change made by the RBI is related to floating-rate loans.
Earlier, borrowers had to wait for a three-year lock-in period to enjoy reduced interest rates.
Now, this restriction has been removed.
This means customers can benefit from lower interest rates as soon as they change — resulting in cheaper EMIs and overall savings on interest payments.
Additionally, borrowers will now have the option to convert their floating-rate loans into fixed-rate loans if they expect rates to fall further.
This flexibility gives customers more control over their loan repayment strategy.
Major Changes in Gold Loan Rules
The RBI has also made big changes in the rules for gold loans and loans against silver. So far, only NBFCs and scheduled banks were allowed to offer these loans.
But now, small banks and cooperative banks (Tier-3 and Tier-4) can also provide gold loans.
This move will benefit individuals and small business owners who use gold for emergency funding.
Earlier, such loans were mostly offered to jewelers, but now any business owner can apply for them.
Gold Metal Loan Facility Extended for Jewelers
To support jewelers, the RBI has extended the gold metal loan facility.
Earlier, its tenure was limited to 180 days, but now it can go up to 270 days.
Even jewelers who don’t manufacture jewelry themselves can now take this loan for outsourcing work.
This step will help small jewelers who import jewelry or get it made from other sources, making it easier for them to manage their business.
RBI Also Updates CIBIL Score Rules
Apart from loan-related changes, the RBI has also updated the rules related to CIBIL scores.
Credit institutions will now have to submit reports weekly instead of every 15 days.
Errors in credit reports can now be corrected more quickly.
KYC numbers will also be included in customer reports for better accuracy.
The RBI has sought public feedback on these proposals by October 20th.
Once implemented, these changes will make credit records more transparent and accurate for all customers.
Key Highlights of RBI’s New Rules:
EMI and loan payments to become cheaper and simpler
Borrowers can switch between floating and fixed-rate loans
Gold loans now available from small and cooperative banks
Gold metal loan duration extended to 270 days
Weekly CIBIL updates for faster correction of credit reports
