Gold Loan Jewellery Damaged or Missing? Your RBI Rights
Got your gold loan jewellery back damaged, lighter or with an item missing? RBI rules make the lender pay. Steps, a worked example and how to complain.
In this article
"I closed my gold loan and got my jewellery back, but a bangle is bent, the chain weighs less and one ring is missing." If this has happened to you, do not leave the branch without recording it. Under RBI's Lending Against Gold and Silver Collateral Directions, 2025, the lender must pay for repairs if pledged gold is damaged and must compensate you for any loss or discrepancy in weight or purity, so your job is to prove the difference using the assay certificate and complain in writing straight away.
These rules apply to all banks, co-operative banks and NBFCs from 1 April 2026, as of October 2026. For how gold loans work overall, see our gold loan guide.
Why it happens
Most cases fall into one of these:
- Handling damage. Clasps break, stones loosen or thin pieces bend during testing, packing or storage.
- Weight differences. Small differences can come from scales that are not calibrated alike, or from comparing gross weight with net weight. Larger gaps can mean a stone or part fell off, or worse.
- Missing items. A ring or earring left out of the sealed packet, or sealed into another customer's packet by mistake.
- Substitution or theft. Rare, but there have been cases of staff or outsiders swapping genuine jewellery with spurious items. This is a criminal matter as well as a lender failure.
- Damage that existed before. If the assay certificate recorded a broken clasp or missing stone at sanction, the lender is not responsible for it.
What RBI's 2025 directions say
| Protection | What the rule requires | Why it matters to you |
|---|---|---|
| Assay certificate | Made in duplicate on letterhead, showing purity, gross and net weight, deductions, damage noted, images and value | Your baseline proof |
| Assaying in your presence | At the time of sanction | You saw the items and their condition |
| Safe custody | Gold handled only in branches, only by the lender's employees, stored in staffed branches with proper security | The lender controls the gold throughout |
| Verification at release | Collateral verified against the certificate when returned | Any difference should be caught at the counter |
| Damage | Repair cost borne by the lender | You should not pay for repairs |
| Loss, deterioration or discrepancy | Lender must suitably compensate the borrower or legal heirs | Covers missing items, lower weight or lower purity |
| Recording | Losses and discrepancies recorded and communicated promptly | Ask for this record |
| Late return | ₹5,000 per day if return exceeds seven working days for reasons attributable to the lender | Applies alongside any damage claim |
| Other remedies | The compensation does not limit your rights under other laws | You can still approach consumer forums or the police |
RBI does not prescribe a formula for the amount of compensation; the lender's board-approved policy should cover it. A fair claim usually covers the current value of the missing gold plus a reasonable cost to restore the item, so put both in writing.
Worked example: valuing the claim
Kavita repays her gold loan and checks her three items at the counter against her assay certificate.
| Item | Net weight on certificate | Net weight at release | Condition at release |
|---|---|---|---|
| Chain, 22 carat | 18.40 g | 17.90 g | Intact |
| Bangle, 22 carat | 12.00 g | 12.00 g | Clasp broken (not noted at sanction) |
| Ring, 22 carat | 4.20 g | Missing | — |
At an illustrative reference price of ₹11,800 per gram for 22 carat gold:
- Chain shortfall: 18.40 − 17.90 = 0.50 g × ₹11,800 = ₹5,900
- Missing ring: 4.20 g × ₹11,800 = ₹49,560
- Bangle: repair cost borne by the lender; Kavita gets a jeweller's written estimate of ₹1,500
- Minimum claim: ₹5,900 + ₹49,560 + ₹1,500 = ₹56,960
The metal value is the floor, not the ceiling. A ring bought new would cost more because of making charges and GST, so Kavita also attaches the original bill and asks for replacement cost. If the lender had held the gold for more than seven working days after repayment, she would add ₹5,000 for each day of delay. Keeping the original loan cheap and short also reduces how long your gold sits in a vault; check payments with our EMI calculator.
How to fix it: step by step
At the counter
- Open and check every item before you sign. Count them, look at clasps, stones and joints, and compare with the photos on your certificate.
- Ask for a reweigh in front of you on the branch's calibrated scale, item by item, using net weight where stones are involved.
- Do not sign a clean receipt. Write the problem on it, for example "ring missing, chain 0.50 g less, bangle clasp broken", then sign and photograph it.
- Ask the branch to record the discrepancy. RBI requires losses and discrepancies to be recorded and communicated to you promptly. Ask for a written acknowledgement with a reference number.
Within a few days
- Send a written complaint to the branch manager with copies of the certificate, the release receipt and photographs.
- Get independent evidence. A jeweller's repair estimate for damage; a test report from a BIS-recognised Assaying and Hallmarking Centre if purity seems different; your purchase bills and hallmark (HUID) numbers.
- File a police complaint if an item is missing or you suspect substitution. Attach the acknowledgement to your lender complaint.
If it is not resolved
- Escalate to the lender's grievance or nodal officer and allow 30 days.
- File with the RBI Ombudsman at cms.rbi.org.in.
If the problem is that the lender has not returned the gold at all after you repaid, the steps differ; see gold not returned after gold loan repayment.
Where to complain and the timelines
| Level | How | Timeline |
|---|---|---|
| Branch | Remark on release receipt, then a written complaint | Same day, then within a few days |
| Grievance or nodal officer | Email or letter as per the lender's website | Allow 30 days for a reply |
| RBI Ombudsman | cms.rbi.org.in or helpline 14448 | After 30 days with no reply, or a rejection; file within 90 days of the final reply or deadline under the RBI Integrated Ombudsman Scheme, 2026 |
| Police | FIR or complaint at the local station | For missing items or suspected substitution |
| Consumer commission | Alternative or additional route for deficiency in service | As per consumer law limits |
The Ombudsman can award compensation for financial loss up to ₹30 lakh and up to ₹3 lakh for loss of time, expenses and harassment under the 2026 scheme. If the lender stops responding, see our guide on a bank not resolving your complaint.
Sample complaint to the lender
Subject: Damaged and missing pledged jewellery, gold loan account [number]
Dear Sir/Madam,
I repaid gold loan account [number] in full on [date] and collected my jewellery on [date] at your [branch] branch. On checking against the assay certificate dated [date], I found: [ring of 4.20 g net missing; chain weighing 17.90 g against 18.40 g on the certificate; bangle clasp broken, not noted at sanction]. I recorded this on the release receipt.
Under the RBI (Lending Against Gold and Silver Collateral) Directions, 2025, the lender must bear the cost of repair and compensate the borrower for loss or discrepancy in pledged gold. I request the return of the missing item or compensation at replacement cost, payment for the shortfall in weight, and repair of the bangle at your cost, within 30 days.
Attached: assay certificate, release receipt with remarks, photographs, jeweller's estimate, purchase bill.
Regards, [Name], [Mobile number]
What not to do
- Do not sign the release receipt without checking. A clean signature is the lender's best defence.
- Do not accept a verbal promise to "look into it". Ask for a written reference number.
- Do not repair the item yourself before the lender inspects it, except with written consent. Photograph the damage first.
- Do not lose your assay certificate. Keep it, and photos of each item, for the whole loan.
- Do not accept compensation at a value you have not checked. Compare with the reference price and your bill before signing any settlement.
Key takeaways
- RBI's 2025 directions make the lender pay for repairs and compensate you for lost items or lower weight or purity.
- Your assay certificate, with weights and photos, is your strongest evidence; check every item against it at release.
- Write any problem on the release receipt before signing it.
- In the example, the minimum claim is ₹56,960: metal value of the shortfall and missing ring plus repair cost.
- Escalate from the branch to the grievance officer, then to the RBI Ombudsman at cms.rbi.org.in after 30 days, and go to the police for suspected theft.
Frequently asked questions
Who pays if my pledged jewellery is damaged by the lender?
The lender. RBI's Lending Against Gold and Silver Collateral Directions, 2025 say that if pledged gold is damaged during the loan, the cost of repair must be borne by the lender.
What if my jewellery is lost or returned lighter?
The lender must suitably compensate you for loss, deterioration or any discrepancy in the quantity or purity of the pledged gold. The lender must also record such losses and inform you promptly.
How do I prove the jewellery came back damaged or lighter?
Your assay certificate from the time of sanction is the key evidence. It must show purity, gross and net weight, deductions, damage noted at sanction and photographs. RBI also requires the gold to be verified against this certificate when it is released.
Should I sign the release receipt if something is wrong?
Do not sign a clean receipt. Write the problem on the receipt, for example the weight difference or the damaged item, sign with that remark, and keep a copy or photo.
Can I get compensation for a delay in returning my gold?
Yes. If the lender does not return the gold within seven working days of full repayment for reasons attributable to it, it must pay ₹5,000 for each day of delay.
Where do I complain if the lender refuses to compensate?
Complain to the branch and the lender's grievance officer. If there is no reply in 30 days or you are not satisfied, file with the RBI Ombudsman at cms.rbi.org.in. You can also file a police complaint if you suspect theft or substitution.
This article is for general education and is not personalised financial, tax or legal advice. Rates and rules are as of 22 Oct 2026; confirm current terms with your lender, AMC or a qualified adviser.
