After the new provision of the Reserve Bank of India (RBI), now jewelers can return some part of the gold loan in the form of physical gold.
New Delhi. The central government has given big relief to jewelers. Jewelers will soon get another option to repay the gold loan. Actually, after the new provision of the Reserve Bank of India (RBI), now jewelers can return some part of the gold loan as physical gold.
The Reserve Bank on Wednesday asked banks to provide an option to jewelery exporters and domestic gold jewelery manufacturers to repay part of the Gold (Metal) Loan (GML) in the form of gold. The GML is paid on an amount equal to the value of the gold borrowed in Indian Rupees. The Reserve Bank has now reviewed these rules.
according to the circular, the Reserve Bank of India, which banks kg portion of gold loan or should more options creditors to return as 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 i.e. GMS 2015 can provide GML to jewelery exporters and domestic manufacturers of gold jewellery.
GMS was started in 2015.
It is worth mentioning that under the Gold Monetization Scheme, you can deposit your gold in the bank. In this scheme, banks pay interest. The government started this scheme in 2015. Its purpose is to make better use of gold kept in homes and trusts.
