Ban on Import of Gold Lifted (India)

Reserve Bank of India in its recent announcement on 19^th February taken a new decision for the precious metal Gold. RBI with the consent of all its regulated authorities decided that the ban on Gold import will be lifted. The decision is however regained by importing gold on consignment basis by banks. World Gold Council of India is quite impressed with Reserve Bank of India’s such step and said that, “RBI's decision to lift a ban on import of gold coins and medallions by banks and allowing them to import gold on a consignment basis was a right move.”

Somasundaram PR, managing director, WGC India further briefly described the news by saying that the decision is a right move in the removal of 80:20 import restriction. The step will clarify important directions which will help India to maintain its previous position. A positive wives have filled the industrial development. He further uttered that the time is now to look for all the related features of gold policy and time to just go beyond the import policy and its incremental changes. He added that Government of India is trying to make gold smoothly fungible asset that can be restored by millions of household.

A circular on 18^th Feb. by RBI confers that, "Nominated banks are now permitted to import gold on consignment basis. All sale of gold domestically will, however, be against upfront payments. Banks are free to grant gold metal loans."

However, with this change Reserve Bank of India have not removed the restrictions on banks in selling gold coins and medallions. Under the scheme of 80:20, the obligations will continue to apply in respect of unutilized gold imported before 28^th Nov. 2014 that is the date of abolition of 20:80 scheme.

Reserve Bank of India presently holds the situation of period before July 2013 when nominated banks could import Gold just by showing delivery, without showing its end use.