Banks authorised to operate the Gold Deposit Scheme may use Exchange-traded and over-the-counter hedging products available overseas to manage price risk. However, while using products involving options, it may be ensured that there is no net receipt of premium, either direct or implied. Banks, which are allowed to enter into forward Gold contracts in India in terms of the guidelines issued by the Department of Banking Operations and Development, are also allowed to cover their price risk by hedging abroad in the manner indicated above.