New Delhi, Sept. 30 -- The Reserve Bank of India (RBI) has expanded the scope of lending against gold, permitting banks to extend need-based working capital loans to manufacturers that use gold as a raw material, a facility so far limited only to jewellers.

In the Reserve Bank of India's (Lending Against Gold and Silver Collateral) (1st Amendment) Directions, 2025, issued on September 29, the central bank stated that scheduled commercial banks (SCBs) and Tier 3 and 4 urban cooperative banks (UCBs) may now provide working capital finance to borrowers engaged in manufacturing or industrial processing activities involving gold or silver. These loans may also be secured by the underlying precious metal.

The RBI, however, stressed that the d...