MUMBAI, May 14: To moderate the demand for gold for domestic use, Reserve Bank of India (RBI) has decided to restrict the import
of gold on consignment basis by banks, only to meet the genuine needs of exporters of gold jewellery.
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.
All other instructions relating to import of gold issued from time to time shall remain unchanged, a notification issued by RBI said.
The Working Group on Gold, Chairman Mr K.U.B. Rao) had recommended aligning gold import regulations with rest of the imports for creating a level playing field between gold imports and
other imports.
Bulk of the gold imported by nominated banks is on consignment basis whereby nominated banks do not have to fund these stocks.
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), it added. (UNI)
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