From domestic nominated banks
Titan Company announced that the Company will be able to avail credit from domestic nominated banks for gold purchases without restrictions. This will also result in the Company getting the benefits of natural hedging of gold fully with a possibility of negative working capital that the Company enjoyed before the curbs were put in place in mid 2013.The Company informed that the RBI issued a circular late last evening (18-02-2015) clarifying that nominated banks may import gold on consignment basis and also offer gold metal loans to domestic users of gold.
Credit for gold purchases was suspended pending clarification from RBI since their circular of 28 November 2014 when the gold import curbs in the form of the 80:20 policy were relaxed.
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