RBI's own words: “Attention of Authorised Persons is drawn to the Reserve Bank’s A.P. (DIR Series) Circulars No. 103 , 107 and 122 dated May 13, June 04 and June 27, 2013 respectively on the captioned subject.” — RBI/2013-14/148
Source: Reserve Bank of India · RBI/2012-13/499 · issued 13 May 2013 · ~1 min read
Quick answerRBI has restricted gold imports on consignment basis by nominated banks to only meet genuine needs of gold jewellery exporters, effective immediately. This aims to moderate domestic gold demand.
The rule, in the simplest words
Banks that are allowed to bring gold from other countries can now only bring it on 'consignment' (where the bank doesn't pay for the gold until it's sold) for jewellery makers who sell gold jewellery to other countries.
Banks cannot use consignment gold to sell to regular customers inside India anymore.
This rule starts right away, so banks must check every gold import to make sure it's only for jewellery exporters.
Banks must tell their customers about this new rule and keep records to show they are following it.
How it plays out — a real example
A forex & trade-finance officer in Mumbai receives a request from a local jeweller to import gold on consignment for domestic sale. The officer explains that under the new RBI rule, consignment gold can only go to jewellery exporters, so she must reject the request and instead guide the jeweller to other import options.
What changed
Previously, nominated banks could import gold on consignment basis without funding stocks. Now, such imports are restricted solely for exporters of gold jewellery. The change aligns gold import regulations with other imports to create a level playing field.
What it means for you
Banks acting as nominated agencies can no longer import gold on consignment for general domestic sale; only for jewellery exporters. This may reduce gold import volumes and impact banks' gold-related fee income. Banks must adjust their gold import operations and ensure compliance with the new restriction.
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
Review and update internal gold import policies to restrict consignment imports to exporters of gold jewellery only.
Communicate the new restriction to all concerned customers and constituents immediately.
Ensure all gold import transactions on consignment basis are verified for end-use by jewellery exporters.
Maintain records to demonstrate compliance with the circular's requirements.
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the effective date of this restriction?
The restriction came into force with immediate effect from May 13, 2013, the date of the circular.
Does this circular affect other modes of gold import?
No, only consignment basis imports are restricted. Other modes like loan basis, suppliers credit, buyers credit, and unfixed price basis remain unchanged.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “Attention of Authorised Persons is drawn to the Reserve Bank’s A.P. (DIR Series) Circulars No. 103 , 107 and 122 dated May 13, June 04 and June 27, 2013 respectively on the captioned subject.”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/499
A.P.(DIR Series) Circular No.103
May 13, 2013
To,
All Scheduled Commercial Banks which are
Authorised Dealers in Foreign Exchange
Madam/Sirs
Import of Gold by Nominated Banks/Agencies
Attention of Authorised Persons is invited to paragraph 97 of the Monetary Policy Statement 2013-14 dated May 3, 2013 regarding import of gold. In terms of AD (G.P.Series) circular No.7 dated March 6, 1998 ( copy enclosed for ready reference), nominated banks/agencies were permitted to import gold on loan basis, Suppliers Credit/Buyers Credit basis, consignment basis as also on unfixed price basis.
2. The Working Group on Gold (Chairman: Shri K.U.B. Rao) had recommended aligning gold import regulations with rest of the imports for creating a level playing field between gold imports and other imports. Bulk of the gold imported by nominated banks is on consignment basis whereby nominated banks do not have to fund these stocks. To moderate the demand for gold for domestic use, it has been decided to restrict the import of gold on consignment basis by banks,only to meet the genuine needs of exporters of gold jewellery.
3. The above instructions will come into force with immediate effect. ADs may bring the contents of this circular to the notice of their constituents and customers concerned.
4. All other instructions relating to import of gold issued from time to time shall remain unchanged.
5. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Rashmi Fauzdar)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/499 · issued 13 May 2013. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 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=7977&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.