 "RBI clarifies gold import norms")
The Reserve Bank of India (RBI) on Thursday clarified that gold import against suppliers’ or buyers’ credit will be on 100 per cent cash margin basis and on documents against payment (DP) basis.
RBI asked banks to ensure that no credit is enabled for import of any form of gold. However, gold import on a loan basis may be allowed, RBI said in the notification. Nominated banks or agencies can import gold for lending on to jewellery exporters, it added.
The central bank advised banks to strictly ensure foreign exchange transactions by their constituents with these instructions. It said the instructions will come into force with immediate effect.
Earlier, RBI had decided to restrict gold import on a consignment basis by banks, nominated agencies, and star trading houses in a bid to ensure gold is imported only to meet the genuine needs of the exporters of gold jewellery.
The central bank had also advised banks that “all Letters of Credit (LC) be opened by nominated banks / agencies for import of gold under all categories will be only on 100 per cent cash margin basis and imports of gold will necessarily have to be on documents against payment (DP) basis.”
Accordingly, gold imports on documents against acceptance (DA) basis will not be permitted, the notification said.
RBI asked banks to ensure that no credit is enabled for import of any form of gold. However, gold import on a loan basis may be allowed, RBI said in the notification. Nominated banks or agencies can import gold for lending on to jewellery exporters, it added.
The central bank advised banks to strictly ensure foreign exchange transactions by their constituents with these instructions. It said the instructions will come into force with immediate effect.
Earlier, RBI had decided to restrict gold import on a consignment basis by banks, nominated agencies, and star trading houses in a bid to ensure gold is imported only to meet the genuine needs of the exporters of gold jewellery.
The central bank had also advised banks that “all Letters of Credit (LC) be opened by nominated banks / agencies for import of gold under all categories will be only on 100 per cent cash margin basis and imports of gold will necessarily have to be on documents against payment (DP) basis.”
Accordingly, gold imports on documents against acceptance (DA) basis will not be permitted, the notification said.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%