The Reserve Bank of India (RBI) has released draft guidelines on loans against gold collateral aimed at harmonizing the regulatory framework across banks and Non-Banking Financial Companies (NBFCs). The objective is to address inconsistencies in lending practices for gold loans. The Finance Ministry has responded to concerns raised regarding these draft norms, particularly advocating relief measures for small borrowers seeking loans below Rs. 2 lakh. This move comes amid criticism from political representatives, including CPI(M) MP Su Venkatesan, who highlighted that jewellery loans constitute 65% of total bank loans and expressed opposition to the new regulations. In addition to the gold loan guidelines, the RBI is preparing a framework for the ethical adoption of artificial intelligence in the financial sector. The central bank is also set to harmonize loan income recognition rules, review lending practices, and expand digital banking regulations and central bank digital currency (CBDC) pilots.