Guidelines on Import of Gold by Nominated Banks/ Agencies - RBI Clarifies
UNDER the 20:80 Scheme introduced in August 2013, at least one fifth, i.e., 20%, of every lot of gold imported into the country was to be exclusively made available for the purpose of exports and the balance for domestic use.
In November 2014, the Government decided to withdraw the 20:80 scheme and restrictions placed on import of gold.
Clarifications have been sought on some of the operational aspects of the guidelines on import of gold consequent upon the withdrawal of 20:80 scheme.
Accordingly, in consultation with the Government, RBI has issued the following clarifications:
(i) The obligation to export under the 20:80 scheme will continue to apply in respect of unutilised gold imported before November 28, 2014, i.e., the date of abolition of the 20:80 scheme.
(ii) Nominated banks are now permitted to import gold on consignment basis. All sale of gold domestically will, however, be against upfront payments. Banks are free to grant gold metal loans.
(iii) Star and Premier Trading Houses (STH/PTH) can import gold on DP basis as per entitlement without any end use restrictions.
(iv) While the import of gold coins and medallions will no longer be prohibited, pending further review, the restrictions on banks in selling gold coins and medallions are not being removed.
RBI Circular 79/RBI., Dated: February 18, 2015