In April of this year, RBI had released a set of draft directions for gold lending which we analyzed here.
On June 6, 2025, the RBI released the final directions - Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025 (we’ll refer to in the rest of this post as Gold Loan Directions or final Gold Loan Directions).
In these directions, the RBI has repealed 31 scattered RBI rules and directions regulating gold lenders - and introduced comprehensive binding requirements for all entities engaging in gold lending in India.
This makes the Gold Loan Directions the sole and all-encompassing regulation governing gold loan operations in India.
In this article, we’ll analyze how exactly the Gold Loan Directions impact paperwork processes during gold loan disbursal.
How do the final Gold Loan Directions differ from the Draft Directions when it comes to paperwork?
So most of what we wrote in our analysis of the Draft Directions still holds true - even with the new Gold Loan Directions.
| Compliance Requirement |
Digital Paperwork Approach |
Physical Paperwork Approach |
| Standardised Document Formats |
Configure templates in your Document Execution Platform to ensure uniformity across all branches. |
Distribute centrally approved printed templates to all branches. Periodically audit for consistency. |
| Mandated Fields in Agreement & KFS |
Pre-fill mandatory fields through LOS → auto-populate into documents. |
Train staff to fill mandated fields correctly. Use checklists to prevent omissions. |
| Valuation Certificate Presence Requirement |
Enforce borrower presence using geolocation + live image capture + collect virtual signature on eCertificate. |
SOP requiring physical presence; may collect borrower signature to verify presence. |
| Valuation Certificate Delivery (Loan Kit + Copy) |
Auto-attach eCertificate to agreement kit; auto-send to borrower via SMS/WhatsApp/email with audit trail. |
Print two copies, get both signed, give one to borrower, and attach the other to the loan kit. |
| Communication in Vernacular Language |
Generate documents dynamically in borrower’s preferred language; verify via UI inputs and language audit logs. |
Maintain pre-printed multilingual formats. Train staff to explain contents in borrower’s language. |
| End Use Evidence (Implied Requirement) |
Capture declaration or upload of supporting documents via app. |
Collect physical proof documents manually during disbursal; retain with loan file for audit readiness. |
| No Disbursal to 3rd Party (Except as allowed) |
Configure workflows to block third-party accounts unless a policy-exception tag is added with documented rationale. |
Staff manually verifies account details and flags exceptions with supervisor approval and documentation. |
Webinar on the Gold Loan Directions
On 22 July, we conducted a webinar on the documentation requirements in the Gold Loan Directions. We go into much more detail in the webinar than we did in this article. You can access the webinar at this link.
Get your gold loan agreements ready
Before sharing or submitting your agreements, use Merge PDF to combine related documents and Compress PDF to reduce their file size for easier uploading and sharing.
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