Gold Metal Loans-Banks to provide option to borrower to repay part of GML in physical gold in lots of one kg or more
AS per RBI directions nominated banks are authorized to import gold and designated banks participating in Gold Monetization Scheme, 2015 (GMS) can extend Gold (Metal) Loans (GML) to jewellery exporters or domestic manufacturers of gold jewellery.
These loans are repaid in INR, equivalent to the value of gold borrowed, on the relevant date/s.
In modification of the existing conditions, it has been provided that Banks shall provide an option to the borrower to repay a part of the GML in physical gold in lots of one kg or more subject to:
a. the GML has been extended out of locally sourced / GMS-linked gold;
b. repayment is made using locally sourced IGDS (India Good Delivery Standard)/ LGDS (LBMA’s Good Delivery Standards) gold;
c. gold is delivered on behalf of the borrower to the bank directly by the refiner or a central agency, acceptable to the bank, without the borrower’s involvement;
d. the loan agreement contains details of the option to be exercised by the borrower, acceptable standards and manner of delivery of gold for repayment;
e. the borrower is apprised upfront, in a transparent manner, of the implications of exercising the option.
Further, Banks shall suitably incorporate the above aspects into the board-approved policy governing GML along with concomitant risk management measures and Banks shall continue to monitor the end-use of funds lent under GML.
- Application though named as rectification but if tax is not legitimate, it also touches merit: HC
- Cost of acquisition as on 01.04.1981 taken as per valuer report by reverse indexing of FMV
- AO was directed to serve notice of hearing through physical mode upon assessee
- ICAI Intermediate & Foundation Examinations to be held thrice in a year from May/June 2024
- Further extension of due date for filing of Form No. 10A/10AB to 30.06.2024 – CBDT Circular