NEW DELHI: Reserve Bank of India has relieved gold import rules to counter the fast growing smuggling in the country.
The central bank said nominated banks are now permitted to import gold on a consignment basis. When gold is imported on a consignment basis, the ownership of the yellow metal remains with the overseas supplier till a final sale is made to the customer and a price is fixed.
The RBI said all sales of gold domestically will be against up-front payments. Further, banks are free to grant gold metal loans. While gold coin and medallion import, which was banned in August 2014, will no longer be prohibited, pending further review, the restrictions on banks in selling gold coins and medallions are not being removed, the RBI said.
Star and Premier Trading Houses (STH/PTH) can import gold on DP (documents against payment) basis as entitled without any end use restrictions.
Under the DP route, an exporter instructs the presenting bank to release shipping and title documents to the importer only if the latter settles the accompanying bill of exchange in full.
The RBI clarified that the obligation to export under the so-called 20:80 scheme will continue to apply in respect of unutilised gold imported before November 28, 2014.
Under the 20:80 scheme, at least 20 per cent of every lot of gold imported into the country is exclusively made available for the purpose of exports and the balance for domestic use.
Somasundaram PR, Managing Director, World Gold Council, said it (the relaxation of gold import norms) is a step in the right direction.
