Abstract: The Reserve Bank of India (RBI) and banks' treatment of loans secured by pledged gold jewellery, in particular, has a substantial impact on the financial stability and credit availability of Indian farmers. Because formal credit channels like Kisan Credit Cards might not adequately satisfy their needs, many small and marginal farmers have historically relied on pledging gold as collateral to obtain short-term credit for agricultural inputs, emergencies, and seasonal working capital. Up to the specified limits recent regulatory clarifications permit the voluntary pledge of gold or silver as collateral for agricultural loans without going against the collateral-free loan norms.

Downloads: | DOI: 10.17148/IARJSET.2026.13260