Gold loans can be repaid with gold

Mumbai: The RBI has allowed banks to recover part of gold metal loan advances in physical gold. Current regulations required lenders to recover gold loans dues in rupees equivalent to the value of the yellow metal borrowed. Banks that have got the permission to import gold and are participating in the gold-monetisation scheme are allowed to extend gold loans, which are availed by jewellers and exporters. The option will be available only for prospective borrowers.