Home › Circulars › RBI/2006-2007/388

RBI bans gold import tie-ups with non-nominated entities

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2006-2007/388 · issued 08 May 2007 · ~1 min read
Quick answerRBI has prohibited nominated banks from entering tie-up arrangements with any other entity, including non-nominated banks, NBFCs, or co-operative banks, for retailing imported gold or gold coins.

What changed

RBI observed that some nominated banks had tie-up arrangements with non-nominated banks, NBFCs, or co-operative banks for retailing imported gold or gold coins. The central bank has now explicitly barred such arrangements, effective immediately.

What it means for you

Nominated banks must now directly handle the retailing of imported gold and gold coins without involving third-party entities like NBFCs or co-operative banks. This restricts distribution networks and may increase operational burden on banks, but ensures tighter regulatory oversight and reduces risks of misuse.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

Nominated banks authorised to import gold/silver, Non-nominated banks, Non-banking financial companies (NBFCs), Co-operative banks

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Does this ban apply to all types of gold imports?

Yes, the prohibition covers tie-up arrangements for retailing imported gold and gold coins under the gold import authorisation scheme.

Can we still sell gold through our own branches?

Yes, direct retailing by the nominated bank through its own branches is permitted. The ban only applies to arrangements with external entities like non-nominated banks, NBFCs, or co-operative banks.

What is the effective date of this directive?

The circular was issued on May 8, 2007, and is effective immediately from that date.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2440: DBOD.IBD.BC.95/23.67.002/2006-07 — "Authorisation for Import of Gold Coin - Tie-up Arrangements" dated May 8, 2007”
📜 Read the original circular — full text as issued by RBI
RBI/2006-2007/388 DBOD. IBD.BC.95 /23.67.002/2006-07 May 8, 2007 All the banks authorised to import Gold/Silver Dear Sir, Import of Gold Coin - Tie-up arrangements Under the Gold import authorisation scheme as envisaged in AD (GP Series) Circular No. 7 dated March 6, 1998 issued by our Foreign Exchange Department, we have been authorizing banks as  Nominated Banks  to import gold for sale to jewellery manufacturers, exporters and domestic users. 2. It has now been brought to our notice that some of the Nominated banks authorised to import gold are reportedly having tie-up arrangements with non-nominated banks/non-banking financial companies/co-operative banks for retailing of imported gold/gold coins. 3. In this connection, it is advised that Nominated banks should not enter into any tie up arrangements for retailing of gold/gold coins with any other entity including non-banking financial companies/co-operative banks/non-nominated banks. 4. Please acknowledge receipt. Yours faithfully, (Vinay Baijal) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/388 · issued 08 May 2007. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3506&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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