Loan-to-Value ratio increase for gold-backed non-agricultural loans temporarily eases borrower liquidity, then reverts for new loans.
The circular temporarily increases the permissible Loan-to-Value (LTV) ratio for loans secured by gold ornaments and jewellery for non-agricultural end-uses to provide liquidity support to households, entrepreneurs and small businesses affected by Covid-19. The enhancement applies to scheduled commercial banks, including regional rural banks, while other terms and conditions of prior RBI guidelines on gold loans remain applicable; fresh gold loans sanctioned after the temporary period will revert to the earlier LTV ceiling.

MSME classification change: composite investment-and-turnover criteria now govern category, triggering reclassification and reporting obligations.
Revisions require use of a composite criterion of investment in plant and machinery or equipment and turnover to classify enterprises; aggregation applies to all units sharing a PAN by combining GSTIN-linked figures. Investment calculation is linked to prior Income Tax Returns, with self-declaration permitted for new enterprises until first ITR, excluding GST and specified exempt items; turnover excludes exports and must be linked to tax and GST data, with temporary self-declaration allowed for entities without PAN until a specified date. Transitional rules preserve existing status for defined post-change periods and the circular supersedes earlier guidance except delayed-payment provisions.

Extension of regulatory return deadlines allows delayed filings during the COVID-19 period and mandates corporate e-mail submissions.
Regulatory returns required to be submitted to the Department of Regulation may be filed with a delay of up to 30 days from the due date for returns whose original due dates fall on or before June 30, 2020; entities able to file earlier should do so. No extension is permitted for statutory returns prescribed under the Banking Regulation Act, the RBI Act or other statutes. Communications to the Department should be routed via corporate e mail to minimize physical paperwork. The Annex lists the specific returns and applicable frequencies covered by this relief.

Dividend declaration restriction: banks must conserve capital and defer payouts until regulatory reassessment based on quarterly results.
Banks are prohibited from making any further dividend payouts out of profits for the financial year ended March 31, 2020, as a prudential capital conservation measure during COVID-19; the restriction is temporary and will be reassessed by the Reserve Bank based on banks' financial results for the quarter ending September 30, 2020, and operates alongside existing dividend declaration guidelines.

Fully Accessible Route for non-resident investment in government securities opens specified tenors to non-residents alongside domestic investors.
Creation of a Fully Accessible Route permitting non-resident investors to purchase designated Central Government securities on the same basis as domestic investors; the Reserve Bank will notify which securities are specified securities, which once designated remain eligible under the FAR until maturity, and new issuances of specified tenors will be eligible with the Reserve Bank able to add or change tenors.