The Reserve Bank of India (RBI), the country’s central bank, has doubled the gold loan repayment period for local jewellers from 90 days to 180 days, according to a statement dated April 3rd.

The RBI has also allowed the nominated banks to decide the repayment period for the gold loans – which they are permitted to extend to domestic jewellery manufacturers, who are not exporters of jewellery – provided the tenor does not exceed 180 days.

The RBI said that the banks should ensure the end-use of gold loans to jewellery manufacturers and adhere to ‘Know Your Customer’ guidelines, which are based on international anti-money-laundering standards.

The 19 banks nominated to import gold under the Gold (metal) Loans Scheme include the Bank of Nova Scotia, ICICI, HDFC and the State Bank of India.