Jewellers Can Now Return Some Part Of Gold Loan In The Form of Gold, Conditions Applied
Mumbai, 24 June 2021: Jewellers who are unable to repay the loan taken from banks on time, can now return some part of the gold loan in the form of gold.
The Reserve Bank on Wednesday asked banks to provide an option to jewellery exporters and domestic gold jewellery manufacturers to repay part of their Gold (Metal) Loans (GML) in the form of gold. GML is paid on an amount equal to the value of gold borrowed in Indian Rupees. The Reserve Bank has now reviewed these rules.
The Reserve Bank issued a circular which said ‘banks should give an option to the creditors to return a part of the gold loan in the form of one kg or more of gold’. However, it will have some conditions.
As per the extant instructions, banks authorized to import gold and authorized banks participating in the Gold Monetization Scheme 2015 (GMS) can provide GML to jewellery exporters and domestic manufacturers of gold jewellery.
