New Delhi [India], June 20 (ANI): The Ministry of Commerce and Industry has announced new import restrictions on certain precious metal alloys containing gold, as well as colloidal metals and chemical compounds.These steps have been taken to strengthen regulatory oversight and prevent misuse of trade channels for importing gold in disguised forms.

The ministry in a statement stated that it “has issued Notification No. 18/2025-26 dated 17th June 2025, to restrict import of alloys of Palladium, Rhodium, and Iridium containing more than 1 per cent gold by weight”.In an official notification dated June 17, 2025, the Directorate General of Foreign Trade (DGFT) issued Notification No. 18/2025-26 to restrict the import of alloys. This move is part of a broader strategy to regulate the import of precious metals and their alloys.This restriction expands the existing rule that earlier applied only to platinum, as outlined in Notification No. 60/2024-25 dated March 5, 2025.

With this update, the government has now brought the entire Customs Tariff Heading (CTH) 7110 under the restricted import category at the 4-digit level. This ensures a uniform and consistent policy framework for all precious metals and their related alloys.However, the government has adopted a balanced approach by allowing the free import of alloys containing less than 1 per cent gold.

This provision ensures that industrial and manufacturing sectors, including electronics, auto components, and specialised chemical industries, are not impacted.The aim is to maintain the smooth availability of essential raw materials while also keeping a check on gold misuse.In a separate notification, DGFT also issued Notification No. 19/2025-26 on the same date to restrict imports of colloidal metals and chemical compounds classified under CTH 2843.

This measure was necessary to prevent the import of gold disguised as chemical compounds.To avoid disruptions for genuine industrial users, the import of these colloidal metals and compounds will be permitted against import authorisation for sectors such as electronics, electrical, and specialised chemical industries.This ensures that the needs of domestic industries are met without loopholes being exploited.The government’s recent measures reflect a calibrated trade policy approach, balancing the ease of doing business for industry with tighter control to curb irregular gold imports. (ANI)

India’s new gold loan regulations to reshape lending landscape: S&P Global

New Delhi [India], June 19 (ANI): S&P Global Ratings anticipates that the new regulations in Gold-Backed Loans will necessitate business model adjustments for lenders, with nimble players likely to gain a competitive edge.India’s booming gold-backed loan sector is poised for significant changes with the introduction of new regulations, expected to be fully implemented by April 1, 2026.

A key change involves the inclusion of interest payments until maturity in the calculation of Loan-to-Value (LTV) ratios, which could reduce the initial loan amount disbursed to borrowers. Additionally, credit appraisals for consumption-focused loans exceeding USD 3,000 and all income-generating loans will now require a cash flow analysis of borrowers, a departure from the traditional reliance on collateral valuation.

The new rules also aim to enhance customer protection by standardizing the regulatory framework and addressing prudential and conduct gaps. This includes clearer guidelines on collateral handling and auction processes, mandating the return of pledged collateral and auction surpluses to borrowers within seven working days.

Disbursements above INR 20,000 (approximately USD 231) will now be made directly to borrowers’ bank accounts. The RBI is also emphasizing greater transparency in interest rate and fee disclosures and scrutinizing the outsourcing of core financial services.

This shift will particularly impact nonbank financial companies (NBFCs) with large gold loan portfolios, such as Muthoot Finance Ltd. and Manappuram Finance Ltd., as they will need to invest in developing new risk management policies and training loan officers.Despite these adjustments, operational agility and service excellence, including quick and seamless loan disbursement, will remain crucial differentiators for lenders.

NBFCs’ strong customer relationships and investments in analytics are expected to help them maintain competitiveness.While these new models offer opportunities, they also introduce risks, particularly the heightened sensitivity to sharp corrections in gold prices if higher LTV norms are adopted for income-producing loans. Gold prices have surged by nearly 80% since late 2023, leading to a significant increase in collateral value and loan books.

The RBI’s regulatory treatment of NBFC gold loans, which applies a 100% risk weight, helps mitigate price risk, although banks currently benefit from a 0% risk weight on these loans. (ANI)

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