Delhi: If your bank delays returning your pledged silver or gold after you have cleared your loan, the Reserve Bank of India (RBI) says you must be paid ₹5,000 per day for every extra day of delay.
This new rule — part of the “Lending Against Gold and Silver Collateral Directions, 2025” — will come into effect from April 1, 2026 and could impact more than 10 crore borrowers who depend on small-ticket loans backed by jewellery and silver savings.
As per RBI’s latest notification (DOR.CRE.REC.26/21.01.023/2025-26), lenders now face strict deadlines, valuation standards, and customer-protection clauses never seen before in India’s collateral market.
What the ₹5,000-Per-Day Rule Actually Means
Under Paragraphs such as 35 and 46 of the new RBI framework, lenders must:
- Return guarantee gold or silver within 7 working days after full repayment.
- If the delay is the lender’s fault, they must compensate ₹5,000 per day of delay.
- If the borrower doesn’t collect the item, the bank must send reminders via SMS, email, or post.
Quick Breakdown — RBI’s Return & Compensation Rule
| Clause | Requirement | Penalty / Action |
|---|---|---|
| Return Window | 7 working days after loan repayment | Mandatory for all banks/NBFCs |
| Delay (Bank’s Fault) | Beyond 7 working days | ₹5,000 per day per borrower |
| Delay (Customer’s Fault) | Borrower absent/dispute/KYC issue | No penalty; written explanation required |
| Lost or Damaged Collateral | During storage or audit | Full market value compensation |
| Communication | Must be in the local language | SMS, email, or physical letter |
Example:
If a customer clears a ₹1.2-lakh silver loan on April 10, 2026, the bank must return pledged silver by April 18.
If the branch delays until April 24, that’s 6 days late, meaning ₹30,000 in mandatory compensation.
Why the RBI Added This Clause
Unlike gold, silver loans are new to the banking system — and silver is heavier, bulkier, and often stored in larger quantities (up to 10 kg per borrower).
As per RBI and IBJA data:
- India doubled its imports, importing 7,669 tonnes of silver in 2024.
- Over 78% of Indian households own silver, and 62% gold.
- Rural silver holdings alone are estimated at 40,000 tonnes — nearly ₹3.8 lakh crore in household value.
That means a huge number of borrowers will soon start pledging silver for small loans.
The RBI’s ₹5,000/day clause ensures lenders treat this collateral as responsibly as gold, with accountability and speed.
“The rule acts as a deterrent,” says a senior banking official at a public sector bank.
“Earlier, borrowers had no defined right if gold returns were delayed. Now, every day counts — literally.”
Silver Loan: Key RBI Rules You Should Know (Effective April 2026)
| Feature | Gold Loan | Silver Loan (New) | EaseMoney Insight |
|---|---|---|---|
| Collateral | Jewellery & coins (≤50g) | Ornaments & coins (≤500g) | Silver now formally accepted |
| Max Weight Limit | No fixed limit | 10 kg ornaments | Designed for small-town households |
| Max Loan-to-Value (LTV) | Up to 90% | Up to 85% | Slightly conservative due to volatility |
| Return Timeline | 7 working days | 7 working days | Uniform for both metals |
| Delay Compensation | ₹5,000/day | ₹5,000/day | Equal protection for silver borrowers |
| Loan Tenure | Up to 3 years | Up to 3 years | Same structure |
| Auction Rule | 90% reserve value | 90% reserve value | Transparency clause identical |
What Happens If the Bank Loses or Damages Your Silver
RBI has gone beyond just delay penalties.
If a lender loses, damages, or finds discrepancies in purity or weight, they must:
- Pay full market compensation, based on IBJA or SEBI-regulated commodity exchange rates;
- Record and communicate the loss immediately to the borrower or legal heir;
- Complete reimbursement within a set internal timeline (usually within 30 days).
This clause was added after the RBI observed multiple customer grievances in gold loans between 2018-2023, where collateral was either delayed or mismatched during return.
Borrower Checklist — How to Claim Your ₹5,000/Day Compensation
| Step | Action | Timeline |
|---|---|---|
| 1 | Repay full loan & collect closure receipt | Day 0 |
| 2 | Wait for 7 working days | Day 1–7 |
| 3 | If not received, contact branch & request written reason | Day 8 |
| 4 | If no valid reason or further delay → write complaint to lender’s grievance cell | Day 9–14 |
| 5 | Still unresolved? File with RBI Ombudsman (IOS, 2021) | Day 15+ |
Why It Matters for Borrowers
Unlike gold, silver is truly the people’s metal — more accessible, more common, and often unaccounted for in formal credit.
RBI’s rule now gives borrowers:
- Speed (7-day window)
- Security (damage/loss compensation)
- Accountability (₹5,000/day penalty)
It ensures small borrowers — especially farmers, artisans, and micro-traders — are protected by the same financial rights as any high-value customer.
EaseMoney Take
Unlike old gold loan cases where customers waited for months to get their ornaments back, the RBI has now flipped the equation.
If a bank delays your pledged metal, every single day costs them ₹5,000.
It’s a small-borrower victory wrapped in a technical rule — but it might just redefine trust in India’s collateral lending.
In short:
Your silver is no longer just savings — it’s a right protected by regulation, time, and compensation.
