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.
What you must do
- 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.
Who it affects
Nominated banks/agencies importing gold, Gold jewellery exporters, Authorised dealers in foreign exchange
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.