Gold import norms tightened further

The move won't have major impact on the falling rupee

The Reserve Bank of India (RBI) on Tuesday further tightened gold import norms. “Gold made available by a nominated agency to units in SEZs (special economic zones) and EoUs (export-oriented units), premier and star trading houses shall not qualify as supply of gold to exporters, for the purpose of the 80/20 scheme,” it said.

In July, RBI had said 20 per cent of all the gold imported into the country would have to be exported — an 80/20 scheme. However with Tuesday’s clarification, imports would be further squeezed, as a large part of gold jewellery exports were taking place from SEZs and export units.

Earlier, importers felt gold supplied to units in SEZs, etc, would be considered exported gold, but RBI has blocked this route, too. Exporting gold and jewellery from outside such units and zones would be difficult.

RBI has said any entity/unit in SEZs and EoUs, premier and star trading houses (irrespective of whether they are nominated agencies or not) are permitted to import gold exclusively for exports alone.

The tightening of gold import norms, however, wouldn’t have a major impact on the weakening rupee. “The rupee is currently driven by global factors. It is on the path to weakness and the sentiment is bearish. These tightening norms may not make much of a difference,” said a currency dealer with a public sector bank.