RBI bans import of gold coins, medallions without licence

Seeking to reduce the import of gold, the Reserve Bank today prohibited inward shipment of gold coins, medallions and dores without licence.

hidden August 14, 2013 22:47:42 IST
RBI bans import of gold coins, medallions without licence

New Delhi: Seeking to reduce the import of gold, the Reserve Bank today prohibited inward shipment of gold coins, medallions and dores without licence.

"From now onwards, import of gold in the form of coins and medallions is prohibited and henceforth all import of gold in any form or purity shall be subject to a licence issued by DGFT prescribing 20-80 scheme," Economic Affairs Secretary Arvind Mayaram told reporters here.

The latest measures are part of the series of steps taken to curb gold import, the single biggest contributor to the widening Current Account Deficit (CAD).

After a dip in June, gold imports again surged in July with 47 tonnes of inward shipments compared to 31 tonnes in the previous month. Import of gold in April-July rose 87 percent to 383 tonnes.

RBI bans import of gold coins medallions without licence

Imaged used for representational purposes only. AFP

He said it shall be incumbent on all nominated banks, agencies and other entities to ensure that at least one-fifth, or 20 percent, of every lot of import of gold is exclusively made available for the purpose of exports and the balance for domestic use.

It has further stipulated that nominate banks, agencies and other entities shall make available gold for domestic use only to the entities engaged in jewellery business, bullion dealers and banks authorised to administer the gold deposit scheme against whole upfront payment.

Also importers will be required to make full upfront payment for the shipments."Gold dore imported will also be subjected to the discipline and it would be monitored at the refinery level.

"The gold which is extracted by refining gold dore, only 80 percent of that would be provided for domestic use, 20 percent has to be exported and similarly proof of export has to be shown before the next consignment is imported," Mayaram said quoting RBI notification.

Under the scheme, any gold that is imported will have to be imported into custom bonded warehouse. Out of the imported gold, 80 percent can be given to domestic users of the designated kind and 20 percent must go to exporter.

"The refinery shall make available for domestic use only to the entities engaged in jewellery business/bullion dealers and to the banks authorised to administer the Gold Deposit Scheme against full upfront payment and sale of gold against any other form of payment shall not be permitted.

"Further, the import of gold dore is permitted only against a licence issued by DGFT," the RBI said.

PTI

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

RBI chief Shaktikanta Das says economic recovery 'stronger than expected', but warns of downside risk due to recent COVID-19 surge
India

RBI chief Shaktikanta Das says economic recovery 'stronger than expected', but warns of downside risk due to recent COVID-19 surge

The central bank which has introduced many unconventional measures to aid recovery apart from cutting key rates by 1.15 percent, expects the Indian economy to shrink by 9.5 percent in FY21

Ex-World Bank economist says RBI's proposal to allow businesses into banking is 'good-looking' step in 'bad direction'
India

Ex-World Bank economist says RBI's proposal to allow businesses into banking is 'good-looking' step in 'bad direction'

Kaushik Basu added that there is a good reason that all successful economies have a clear line between industries and corporations on one hand, and banks and lending organisations on the other

Laxmi Vilas Bank, DBIL merger effective from 27 Nov, says RBI after Cabinet nod
Business

Laxmi Vilas Bank, DBIL merger effective from 27 Nov, says RBI after Cabinet nod

The moratorium imposed on the crisis-ridden lender will be removed on Friday and depositors of LVB will be able to operate their accounts as customers of DBS Bank India from that day, said the Central bank