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/2012-13/520 · issued 04 Jun 2013 · ~2 min read
Quick answerRBI has extended gold import restrictions to all nominated agencies and star trading houses. Consignment imports are now allowed only for jewellery exporters. All LCs must be backed by 100% cash margin, and imports must be on DP basis, not DA.
The rule, in the simplest words
Only jewellery exporters can bring gold on consignment (where the seller keeps ownership until sold).
All letters of credit (LCs, a bank promise to pay) for gold imports need 100% cash margin (full payment upfront).
Gold imports must be on Documents against Payment (DP, pay to get documents) basis, not Documents against Acceptance (DA, promise to pay later).
These rules apply to all banks and agencies that import gold, except for jewellery exporters.
How it plays out — a real example
A forex & trade-finance officer in Mumbai processes an LC for a star trading house importing gold. She insists on 100% cash margin and DP terms, explaining that DA is banned. She also verifies the importer is not a jewellery exporter, so the consignment restriction applies, and she flags the shipment for end-use checks.
What changed
RBI extended the May 13, 2013 circular's consignment import restrictions to all nominated agencies and premier/star trading houses. Now, all gold imports on consignment by banks and agencies are permitted only for exporters of gold jewellery. Additionally, all LCs for gold imports require 100% cash margin, and imports must be on Documents against Payment (DP) basis; Documents against Acceptance (DA) is banned, except for jewellery exporters.
What it means for you
Banks and nominated agencies face stricter liquidity and documentation requirements for gold imports. The 100% cash margin on LCs and DP-only basis increase upfront costs and reduce trade credit flexibility. However, exporters of gold jewellery are exempt, so lenders must carefully verify end-use to avoid compliance breaches.
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
Update internal gold import policies to require 100% cash margin on all LCs and DP-only terms for non-exporter imports.
Implement end-use verification checks to ensure consignment imports are only for jewellery exporters.
Train trade finance staff on the ban on DA basis for gold imports and the exemption for exporters.
Communicate these changes to all constituents dealing with gold imports immediately.
Who it affects
Scheduled commercial banks acting as Authorised Dealers, Nominated agencies for gold import, Premier/star trading houses importing gold, Exporters of gold jewellery (exempted from restrictions)
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does the 100% cash margin on LCs apply to all gold imports?
Yes, all LCs for gold imports under any category must be on 100% cash margin basis, except imports meant for exporters of gold jewellery.
Can we still import gold on Documents against Acceptance (DA) basis?
No, DA basis is not permitted for any gold imports, except those meant for exporters of gold jewellery. All imports must be on Documents against Payment (DP) basis.
Who is exempt from these restrictions?
Imports of gold to meet the needs of exporters of gold jewellery are exempt from the consignment restriction, 100% cash margin on LCs, and the DP-only requirement.
📜 This document’s life story (1 recorded event, 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/2012-13/520
A.P. (DIR Series) Circular No.107
June 4, 2013
To
All Scheduled Commercial Banks which are
Authorised Dealers (ADs) in Foreign Exchange/ All agencies
nominated for import of gold
Madam/Sir
Import of Gold by Nominated Banks /Agencies
Attention of Authorised Persons is drawn to our A.P. (DIR Series) Circular No. 103 dated May 13, 2013 on the captioned subject in terms of which, it was decided to restrict the import of gold on consignment basis by banks, only to meet the genuine needs of the exporters of gold jewellery. It has now been decided to extend the provisions of this circular to all nominated agencies/ premier / star trading houses who have been permitted by Government of India to import gold. Accordingly, any import of gold on consignment basis by both nominated agencies and banks shall now be permissible only to meet the needs of exporters of gold jewellery.
2. It has further been decided that all Letters of Credit (LC) to be opened by Nominated Banks / Agencies for import of gold under all categories will be only on 100 per cent cash margin basis. Further, all imports of gold will necessarily have to be on Documents against Payment (DP) basis. Accordingly, gold imports on Documents against Acceptance (DA) basis will not be permitted. These restrictions will however not apply to import of gold to meet the 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. They are also advised to strictly ensure that foreign exchange transactions effected by / for their constituents are compliant with these instructions in letter and spirit.
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,
(C D Srinivasan)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/520 · issued 04 Jun 2013. The plain-English explanation above is BankPulse’s own independent summary.
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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=8020&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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