Export houses can import gold; banks can give gold loans for jewellery mfg: RBI
Updated: May 22, 2014 12:17:15pm
Mumbai, May 22 (KNN) Easing gold import norms, the Reserve Bank has allowed select trading houses to import the commodity, said an RBI notification adding that it has also allowed banks to give gold metal loans to domestic jewellery manufacturers, out of the eligible domestic import quota of 80 per cent.
RBI in July last year had imposed severe restrictions on gold imports in order to check the current account deficit.
“Star Trading Houses / Premier Trading Houses (STH/PTH) which are registered as nominated agencies by the Director General of Foreign Trade (DGFT) may now import gold under 20:80 scheme…,” RBI said in a notification.
The eligible star trading houses and premier trading houses however will have to follow certain conditions.
The new norms come into force with immediate effect. However, the existing guidelines stating that importers can import gold, provided that 20 per cent of it is exported as finished products, remain as it is.
Under the 80:20 scheme, the government had, on August 14 last year, allowed nominated agencies to import gold on the condition that 20 per cent of the import would be exported.
“It has been decided to permit the nominated banks, to give Gold Metal Loans (GML) to domestic jewellery manufacturers out of the eligible domestic import quota of 80 per cent to the extent of GML outstanding in their books as on March 31, 2013,” RBI notification added.
“The Government of India and Reserve Bank of India has been receiving representations from the jewellers, bullion dealers, AD banks, and trade bodies to rationalise the guidelines for import of gold.
“Taking into account such representations and in consultation with the Government of India, it has been decided to modify the guidelines for import of gold by the nominated banks / agencies / entities,” RBI said.
The move is likely to increase the monthly gold import from 25-20 tonnes to 50-60 tonnes. (KNN/SD)
RBI in July last year had imposed severe restrictions on gold imports in order to check the current account deficit.
“Star Trading Houses / Premier Trading Houses (STH/PTH) which are registered as nominated agencies by the Director General of Foreign Trade (DGFT) may now import gold under 20:80 scheme…,” RBI said in a notification.
The eligible star trading houses and premier trading houses however will have to follow certain conditions.
The new norms come into force with immediate effect. However, the existing guidelines stating that importers can import gold, provided that 20 per cent of it is exported as finished products, remain as it is.
Under the 80:20 scheme, the government had, on August 14 last year, allowed nominated agencies to import gold on the condition that 20 per cent of the import would be exported.
“It has been decided to permit the nominated banks, to give Gold Metal Loans (GML) to domestic jewellery manufacturers out of the eligible domestic import quota of 80 per cent to the extent of GML outstanding in their books as on March 31, 2013,” RBI notification added.
“The Government of India and Reserve Bank of India has been receiving representations from the jewellers, bullion dealers, AD banks, and trade bodies to rationalise the guidelines for import of gold.
“Taking into account such representations and in consultation with the Government of India, it has been decided to modify the guidelines for import of gold by the nominated banks / agencies / entities,” RBI said.
The move is likely to increase the monthly gold import from 25-20 tonnes to 50-60 tonnes. (KNN/SD)
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