What changed
RBI has extended the facility of advance payment remittance for 11 days to Qualified Jewellers for importing silver through IIBX. Previously, this facility was available only for gold imports under the same conditions. The change follows DGFT Notification No.35/2023 dated October 11, 2023, which permitted Qualified Jewellers to import silver under specific ITC(HS) Codes via IIBX.
What it means for you
Banks can now process advance payments for silver imports by Qualified Jewellers, expanding their bullion financing operations. This aligns silver import rules with gold, simplifying compliance for lenders dealing with IIBX transactions. It may increase demand for trade credit and forex services from jewellers.
What you must do
- Update internal policies to include silver imports under the same advance payment conditions as gold for Qualified Jewellers.
- Ensure compliance with conditions in A.P. (DIR Series) Circular No.04 dated May 25, 2022 for these transactions.
- Inform relevant branches and trade finance teams about the new facility for silver imports via IIBX.
- Verify that customers are Qualified Jewellers as notified by IFSCA before processing advance remittances.
Who it affects
AD Category-I banks, Qualified Jewellers notified by IFSCA, India International Bullion Exchange IFSC Ltd (IIBX)
What is the maximum advance payment period allowed for silver imports under this circular?
The advance payment period is eleven days, same as for gold imports under the earlier circular.
Do banks need any additional approval to process these silver import payments?
No, AD Category-I banks are permitted to allow such remittances subject to the conditions in A.P. (DIR Series) Circular No.04 dated May 25, 2022, without needing separate RBI approval.
Which entities are eligible to import silver under this facility?
Only Qualified Jewellers as notified by the International Financial Services Centres Authority (IFSCA) are eligible.