RBI issues amendments to Gold Metal Loan scheme post examining feedback on draft norms

Reserve Bank of India

The Reserve Bank of India (RBI) on December 4 issued amendments to Gold Metal Loan (GML) scheme, after reviewing the feedback received on the draft.

“Feedback received on the above draft Direction has been examined and suitably incorporated while finalising the same,” RBI said in a release.

The central bank accepted the feedback on the ‘gold in raw form’ and have replaced the the term ‘Primary Gold’ as defined under extant regulations.

A suggestion has been made that SBLC may be extended on behalf of domestic manufacturers as well as exporter jewelers, and the central bank accepted it saying that the para has been rephrased to enable extension of GML based on SBLC/BG to all jewellers, including exporter jewellers.

Further, a clarification has been sought on whether weighted average rate of interest is to be calculated on loan amount sanctioned or disbursed, and the central bank said the template has been revised to require disclosure of weighted average rate of interest only on the basis of loan disbursement amount, instead of sanctioned amount. Further, the periodicity of reporting has been increased from monthly to quarterly.