RBI Relaxes Gold Import Rules for Trading Houses
May 22, 2014 4:22 AM
By Deena Taylor
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RAPAPORT... The Reserve Bank of India (RBI) will allow star trading houses (STH) and premier trading houses (PTH) to import gold under the 20:80 scheme. The decision follows recent presentations made by jewelers, bullion dealers, authorized dealer banks and trade bodies in an effort to ease restrictions on gold imports.
RBI initially implemented the 20:80 scheme to help combat the country's current account deficit (CAD) and banned nominated banks and agencies, premier or star trading houses from importing gold for use in the domestic market in June 2013.
The RBI will also permit banks to provide gold metal loans (GML) to domestic jewelry manufacturers out of the eligible domestic import quota of 80 percent to the extent of GML outstanding on their books as of March 31, 2013. This means that no credit sale of gold in any form will be allowed for domestic use, except for GML. View the full circular.
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Tags:
Deena Taylor, gold, RBI
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