Reserve Bank Governor Sanjay Malhotra said on Wednesday that the proposed guidelines on gold loans would not tighten such borrowings, but rationalized.

He said during a conversation with the media here, “(Draft) guidelines will be issued soon. We think it is not strict. It is only to make rational.

The RBI will publish the draft guidelines for consultation and then it will be finalized based on feedback.

Earlier, the Governor unveiled the first bilateral monetary policy for the current financial year, stating that the loan against the bail of gold jewelery and jewelery, commonly known as a gold loan, is given by regulated institutions for both consumption and income-production purposes. He said that in order to consume guidelines in various types of regulated institutions, as far as possible, their abilities to bear different risks, we will issue comprehensive rules on prudent criteria and conduct- aspects for such loans.