New Delhi, May 30 -- The Ministry of Finance on Friday said it has asked the Reserve Bank of India (RBI) to ensure that the needs of small gold loan borrowers are not affected by the central bank's proposed new rules on lending against gold as collateral.

The ministry, in a post on social media platform X, said that the Draft Directions on Lending Against Gold Collateral issued by the RBI have been reviewed by the Department of Financial Services (DFS) under the guidance of Union Finance Minister Nirmala Sitharaman.

The DFS has shared its suggestions with the RBI and asked the central bank to make sure that the new rules do not make it difficult for small borrowers to get gold loans. These borrowers often depend on small-ticket loans to...