New Delhi, Dec 20 (KNN) The government has imposed restrictions on imports of precious metals like gold and silver in certain forms that were earlier freely imported under a “restricted” category.

This will now stop, importers from buying gold in alternative forms such as powder, plates and strips and also prevent any duty arbitrage on imports from countries with which India has trade agreements.

According to a notification issued by the Directorate General of Foreign Trade (DGFT), import of gold in any form has been placed in "restricted" category from the "free" category.

“Import policy of gold in any form, other than monetary gold and silver, is amended from ‘free’ to ‘restricted’; import is allowed only through nominated agencies as notified by the RBI (in case of banks) and DGFT (for other agencies),” the directorate said on Wednesday.

However, import under advance authorisation and supply of gold directly by the foreign buyers to exporters against orders has been exempted.

The restrictions come in the backdrop of rising imports of gold, which increased 6.59 per cent to $2.94 billion in November from $2.76 billion a year ago.

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