RBI eases gold import advance remittance for UAE CEPA TRQ holders via IIBX
Current · Source: Reserve Bank of India · RBI/2023-24/118 · issued 31 Jan 2024 · ~2 min read
Quick answerRBI now permits AD Category-I banks to allow valid TRQ holders under India-UAE CEPA to remit advance payment for 11 days for gold imports through IIBX, following DGFT notification and existing circular conditions.
The rule, in the simplest words
Banks can now send money early (advance payment) for 11 days to buy gold from IIBX (a special gold exchange) for TRQ holders (companies that have a special permit to import gold under the India-UAE trade deal).
Only TRQ holders who are valid under the India-UAE CEPA (a trade agreement between India and UAE) can use this facility, and banks must check their permit is real.
Banks must follow the same rules from the May 2022 circular (like the 11-day limit) and make sure the gold is imported under specific ITC(HS) codes (product codes for customs).
This new rule adds TRQ holders to the list of people who can get advance payment, which earlier only included Qualified Jewellers (special jewelers approved by IFSCA).
How it plays out — a real example
A forex & trade-finance officer in Mumbai receives a request from a TRQ holder, a company importing gold under the India-UAE trade deal. The officer checks the company's TRQ permit and the correct ITC(HS) code, then processes an advance payment for 11 days to buy gold through IIBX, making the trade smoother for the customer.
What changed
RBI extended the advance remittance facility, previously available only to Qualified Jewellers, to valid TRQ holders under the India-UAE CEPA for gold imports through IIBX. This aligns with DGFT Notification No.44/2023 allowing TRQ holders to import gold under specific ITC(HS) codes via IIBX. The 11-day advance payment window and other conditions from the May 2022 circular remain unchanged.
What it means for you
Banks can now process advance remittances for gold imports by UAE CEPA TRQ holders through IIBX, expanding the eligible importer base. This facilitates smoother trade finance operations for lenders dealing with bullion imports under the bilateral trade agreement. Banks must ensure compliance with the original May 2022 circular's conditions and verify TRQ validity.
What you must do
Update internal forex policies to include TRQ holders under India-UAE CEPA as eligible for 11-day advance remittance for gold imports via IIBX.
Verify TRQ holder status and ITC(HS) code compliance as per DGFT Notification No.44/2023 before processing remittances.
Communicate the revised facility to relevant trade finance and bullion desk teams, and inform customers who are TRQ holders.
Ensure all remittances adhere to conditions in A.P. (DIR Series) Circular No.04 dated May 25, 2022.
Who it affects
AD Category-I banks, TRQ holders under India-UAE CEPA, Qualified Jewellers importing gold via IIBX, Trade finance departments handling bullion imports
❓ Common questions
Who is eligible for this advance remittance facility?
Valid Tariff Rate Quota (TRQ) holders under the India-UAE CEPA, as notified by IFSCA, are now eligible to remit advance payment for 11 days for gold imports through IIBX.
Does this circular change the 11-day advance payment period?
No, the 11-day advance payment period remains the same as specified in the earlier A.P. (DIR Series) Circular No.04 dated May 25, 2022.
What documentation must banks check before processing?
Banks must verify the TRQ holder's validity under DGFT Notification No.44/2023 and ensure the import is under the specified ITC(HS) codes through IIBX.
📜 Read the original circular — full text as issued by RBI
RBI/2023-24/118
A.P. (DIR Series) Circular No.14
January 31, 2024
To
All Category-I Authorised Dealer Banks
Madam/Sir,
Guidelines on import of gold by Tariff Rate Quota (TRQ) holders under the India-UAE CEPA as notified by–The International Financial Services Centres Authority (IFSCA)
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to A.P. (DIR Series) Circular No.04 dated May 25, 2022 , in terms of which AD Category-I banks have been permitted to remit advance payment on behalf of Qualified Jewellers as notified by International Financial Services Centres Authority (IFSCA) for eleven days for import of gold through India International Bullion Exchange IFSC Ltd (IIBX).
2. Further, attention of AD Category-I banks is invited to Notification No.44/2023 dated November 20, 2023 issued by DGFT, in terms of which, valid Tariff Rate Quota (TRQ) holders under the India-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA) as notified by the IFSCA have been permitted to import gold under specific ITC(HS) codes through IIBX against the Tariff Rate Quota (TRQ).
3. Accordingly, it has been decided that subject to the directions as mentioned in A.P. (DIR Series) Circular No.04 dated May 25, 2022 , AD Category-I banks may allow valid TRQ holders under the India-UAE CEPA to remit advance payment for eleven days for import of gold through IIBX against the TRQ.
4. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
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,
(Puneet Pancholy)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2023-24/118 · issued 31 Jan 2024. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (AD Category-I banks, TRQ holders under India-UAE CEPA, Qualified Jewellers importing gold via IIBX, Trade finance departments handling bullion imports), your first concrete step on “RBI eases gold import advance remittance for UAE CEPA TRQ holders via IIBX” is: “Update internal forex policies to include TRQ holders under India-UAE CEPA as eligible for 11-day advance remittance for gold imports via IIBX.” (RBI issued this 31 Jan 2024).
Circular: RBI/2023-24/118 -- RBI eases gold import advance remittance for UAE CEPA TRQ holders via IIBX
Issued: 31 Jan 2024
Action required: Update internal forex policies to include TRQ holders under India-UAE CEPA as eligible for 11-day advance remittance for gold imports via IIBX.
Action required: Verify TRQ holder status and ITC(HS) code compliance as per DGFT Notification No.44/2023 before processing remittances.
Action required: Communicate the revised facility to relevant trade finance and bullion desk teams, and inform customers who are TRQ holders.
Action required: Ensure all remittances adhere to conditions in A.P. (DIR Series) Circular No.04 dated May 25, 2022.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
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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=12604&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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