What changed
Import of gold coins and medallions is now prohibited. The 20/80 rule (20% for exports, 80% for domestic use) now applies to all gold forms including dore, monitored at refinery level. Domestic gold supply is restricted to jewellery entities, bullion dealers, and Gold Deposit Scheme banks against full upfront payment only. Imports are linked to the highest quantity of gold supplied to exporters in any one of the last three years, with front-loading restricted (importing more than the maximum of two months' export requirement per lot is considered unusual).
What it means for you
Banks and nominated agencies face stricter compliance: they must ensure 20% of each gold import lot is exported, and domestic sales are cash-only. The ban on coin/medallion imports closes a loophole. Import volumes are now tied to historical export performance, limiting speculative imports. This tightens gold supply, potentially increasing costs for jewellers and bullion dealers.
What you must do
- Ensure 20% of each gold import lot is exclusively used for exports; monitor port-wise compliance with customs.
- Restrict domestic gold sales to jewellery businesses, bullion dealers, and Gold Deposit Scheme banks only against full upfront payment.
- Calculate import limits based on the highest annual gold supply to exporters in the last three years; avoid importing more than two months' export requirement per lot.
- For first-time importers under the 20/80 scheme, obtain prior RBI approval before placing orders.
- For gold dore imports, verify DGFT license and ensure 20% export obligation at refinery level per consignment.
Who it affects
Category-I Authorised Dealer Banks, Nominated banks and agencies for gold import, Premier and star trading houses, SEZ units and Export Oriented Units (EoUs), Gold refineries, Jewellery businesses and bullion dealers
What is the 20/80 scheme for gold imports?
It requires that 20% of every gold import lot must be exclusively used for exports, and the remaining 80% can be sold domestically. This applies to all gold forms including dore, monitored at the refinery level.
Can we still import gold coins and medallions?
No, import of gold in the form of coins and medallions is now prohibited under this circular.
How are import quantities restricted under the new rules?
Imports must be linked to the highest quantity of gold supplied to exporters in any one of the last three years. Front-loading is restricted; importing more than two months' export requirement in a single lot is considered unusual.