RBI has offered the borrowers the choice of repaying up a chunk of their gold loan
The Reserve Bank of India (RBI) has instructed banks to give gold jewellery exporters and domestic producers the option of repaying a portion of their GML in genuine gold in lots of one kg or more. Currently, returning these loans is important in rupees on the due date/s, equal to the value of gold borrowed. 
They may give the borrower the option of repaying a portion of the GML in physical gold in lots of one kg or more, provided that they extended the GML using locally sourced/ GMS (Gold Monetization Scheme)-linked gold.
They made repayment using locally sourced IGDS (India Good Delivery Standard)/ LGDS (LBMA’s Good Delivery Standards) gold. Delivery of gold on behalf of the borrower directly by the refiner or a Central agency acceptable to the bank.
The loan agreement contains details of the option to be exercised by the borrower, good standards, and manner of delivery of gold for repayment. In addition, the loan agreement includes details of the opportunity to be exercised by the borrower, acceptable means, and the method of delivery of gold for compensation.
And the information to the borrower of the consequences of exercising the options upfront and transparently is there.
The Bank of England has requested banks to include the factors mentioned earlier into the board-approved GML policy, as well as risk management procedures. Banks will continue to scrutinise how individuals who lent under GML are used.
Nominated banks licenced to import gold and designated banks taking part in the Gold Monetization Scheme, 2015 (GMS) can issue Gold (Metal) Loans (GML) to jewellery exporters or domestic gold jewellery makers, according to the current guidelines.
