Comprehensive gold policy on cards

Banks want to participate in gold options, spot exchange

Ministry of Finance along with Ministry of Commerce, Reserve Bank of India, Ministry of Consumer Affairs and other stakeholders are coming out with a comprehensive gold policy. This was stated by the India Bullion and Jewellers Association (IBJA) in a statement issued on the outcome of its just concluded 14th edition of India International Gold Convention 2017 organised in Goa. 

Policy under preparation, according to participants, includes setting up of gold spot exchange for transparent trading, India good delivery standard that will make gold refund in India as acceptable for good delivery, permitting banks dealing in gold to hedge in gold options.

It was also resolved in the gold conclave that industry stakeholders will be consulted in gold developments to ensure hassle free implementations. IBJA statement said that Manoj Dwivedi, IAS, joint secretary, the ministry of commerce and industry welcomed the suggestion and agreed for stakeholders' meeting twice a month.

Regarding import of gold without duty from South Korea under a free trade agreement, experts proposed that for such import of gold and gold articles, a GST cess be levied partly by reducing basic customs duty in such a manner that the net tax impact becomes equivalent for goods imported into the country both from non-FTA and FTA countries.

Giving faster refunds of GST to exporters, relaxing e-way bill provisions for moving gold within the city, allowing banks to hedge their gold risks in options on derivative exchanges were other important issues raised in the conference.