Reserve Bank Of India
A.P. (DIR Series) Circular No. 34
September 24, 2012
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Foreign Exchange Management Act, 1999-Import of gold in
any form including jewellery made of gold/precious metals
or / and studded with diamonds / semi precious / precious
stones - clarification
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited
to the provisions contained in
A.P.(DIR Series) Circular No.59 dated May 6,
2011, in terms of which, AD Category – I banks have been permitted to approve
Suppliers’ and Buyers’ credit (trade credit) including the usance period of
Letters of Credit for import of rough, cut and polished diamonds, for a period
not exceeding 90 days, from the date of shipment.
- It is clarified that Suppliers’ and Buyers’ credit (trade credit) including
the usance period of Letters of Credit opened for import of gold in any form
including jewellery made of gold/precious metals or/ and studded with diamonds/
semi precious / precious stones should not exceed 90 days, from the date of
shipment.
- All the instructions issued for direct import of gold, vide
A.P. (DIR Series)
Circular No.2 dated July 9, 2004; import of Platinum / Palladium/ Rhodium
/Silver vide A.P. (DIR Series) Circular No.12 dated August 28, 2008; advance
remittance for import of rough diamonds, vide A.P. (DIR Series) Circular No. 21
dated December 29, 2009 and import of rough, cut and polished diamonds, vide
A.P.(DIR Series) Circular No.59 dated May 6, 2011, shall remain unchanged.
- AD Category – I banks may bring the contents of this circular to the notice
of their constituents and customers concerned.
- 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,
(Rashmi Fauzdar)
Chief General Manager
RBI/2012-13/220