Reserve Bank Of India
A.P.(DIR Series) Circular No.103
May 13, 2013
To,
All Scheduled Commercial Banks which are
Authorised Dealers in Foreign Exchange
Madam/Sirs
Import of Gold by Nominated Banks/Agencies
Attention of Authorised Persons is invited to paragraph 97 of the Monetary
Policy Statement 2013-14 dated May 3, 2013 regarding import of gold. In terms of
AD (G.P.Series) circular No.7 dated March 6, 1998 (copy enclosed for ready
reference), nominated banks/agencies were permitted to import gold on loan
basis, Suppliers Credit/Buyers Credit basis, consignment basis as also on
unfixed price basis.
- The Working Group on Gold (Chairman: ShriK.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. To moderate the demand for gold for domestic use, it has been
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.
- 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).
Yours faithfully,
(Rashmi Fauzdar)
Chief General Manager
RBI/2012-13/499