Following the government's feedback on draft gold loan norms last week, Reserve Bank of India Governor Sanjay Malhotra said that all such loans with a ticket size of up to Rs 2.5 lakh loans will likely be exempted from these norms."A declaration of ownership will be enough for gold loans and lenders do not need credit appraisal for gold loans up to Rs 2.5 lakh," the RBI governor said.End-use of gold loans will only be monitored when lenders would seek the benefit of priority sector lending norms, he added.The central bank is working on these gold loan regulations and it should be released by Monday latest. Regarding the loan-to-value ratio, he stated that it should be limited to 85% for consumption loans. Additionally, lenders must maintain an 85% LTV for small-ticket gold loans under Rs 2.5 lakh, and interest must be applied.RBI Monetary Policy Highlights: Sharp Rate Cut, Stance Changed, Inflation Projection Lowered And MoreThis has come after consultation and impact studies on these new gold loan regulations. RBI had earlier brought in stringent gold loan norms because regulated entities were not following these directions and were giving out gold loans of up to 88% of gold value, he said.According to Malhotra, the new guidelines will make such loans safer and will also help the central bank regulate the sector well.On May 30, in a post on social media platform X, the Department of Financial Services had openly countered the RBI on its draft norms on gold loans.DFS had examined the norms and had sent some suggestions to the regulator on implementation. According to the department, the suggestions are being made to ensure that small value borrowers are not adversely impacted by the rules.Among the suggestions, the government is asking RBI to delay implementation of these norms till Jan. 1, 2026."...Such guidelines will need time to implement at the field level and hence may be suitable for implementation from January 1, 2026 only," the post had read.This back and forth between the government and the RBI has come as the RBI's draft norms, released on April 9, did not include any specific implementation date for these norms. Typically, after the regulator has received due feedback, it releases final norms within a few months of the draft.The government had also said that the RBI may consider excluding small value gold loan borrowers up to Rs 2 lakh from these norms. Moreover, the government reminded the RBI that concerns raised by various stakeholders, as well as feedback from public will be considered before a final set of guidelines are issued.RBI Repo Rate Cut — Here's How Home Loan Borrowers Are Set To Benefit. Read more on Economy & Finance by NDTV Profit.