FinMin calls meet to spur gold and silver transactions through IIBX

The officials also noted that the upcoming meeting will take stock of the progress made since the last review held on August 6, 2025

The Ministry of Finance (FinMin) has called a high-level meeting on November 4 to explore measures for enhancing the volume of gold and silver transactions through the India International Bullion Exchange (IIBX) at GIFT City in Gujarat’s Gandhinagar, a senior government official told Business Standard.

 

“The upcoming deliberations will focus on the status of bullion trading on IIBX. The exchange will give a presentation on the latest position of bank onboarding, and trading volumes achieved so far. The deliberations will also take updates from banks on their progress in securing Board and the Reserve Bank of India (RBI) approvals, and on the commencement of actual trading operations through nominated banks and International Banking Units (IBUs),” said the official.

 

The meeting follows a review chaired by Finance Minister Nirmala Sitharaman on June 26, 2025, where she had directed key stakeholders to accelerate the development of the bullion ecosystem at the International Financial Services Centre (IFSC) in GIFT City.

 

The senior official said that the Department of Economic Affairs (DEA), Department of Revenue (DoR), the RBI, International Financial Services Centres Authority (IFSCA), the IIBX, and leading public and private sector banks are expected to attend deliberations. 

 

“The focus this time will be on actual trading by banks, bringing in foreign bank participation, and aligning IIBX’s structure with international best practices,” the source said.  

 

The meeting is also expected to discuss the proposal to introduce new trading models such as Gold Metal Loans and other arrangements similar to the consignment-based model prevalent in the domestic market. 

The source added that the ministry will also review efforts to expand the participant base by easing entry norms for jewellers. The IFSCA is likely to apprise the meeting of its proposal to reduce the minimum net worth requirement for “Qualified Jewellers” from ₹25 crore to ₹15 crore.

 

“Additionally, progress on information technology (IT) system integration between IIBX and bank platforms, including trading terminal access, Application Programming Interface (API) readiness, and operational support, will be discussed,” the official said.

 

“A major portion of the deliberations will centre on incentive proposals to boost bullion trading through IIBX. These include routing all gold and silver imports under the India-UAE Cepa (Comprehensive Economic Partnership Agreement) through the exchange and gradually mandating all bullion imports via IIBX. Other measures under consideration include a 0.5 per cent concession in basic Customs duty for bullion imported through IIBX, a possible 3 per cent IGST (integrated goods and services tax) exemption, and the operationalisation of Free Trade Warehousing Zones (FTWZs) at airports to facilitate faster movement of gold and silver to Tier-1 and Tier-2 cities. The operationalisation of silver bar imports for industrial users, import of large bars through IIBX, and the opening of foreign currency accounts for market participants will also be discussed,” added the senior official.

 

“The government’s broader aim is to make IIBX the preferred gateway for bullion imports and trading by ensuring regulatory clarity, fiscal support, and active participation from banks and jewellers,” another official added.

Bullion push

• The meeting on Nov 4 will review current participation of banks in bullion trading at IIBX
• Deliberation expected on possible measures to enhance trading volumes and stakeholder engagement
• Focus on actual trading by banks, bringing in foreign bank participation, aligning IIBX’s structure with int’l best practices
• Proposal to introduce new trading models such as Gold Metal Loans may be discussed