Bullion bottleneck eases as government clears banks for gold and silver imports till 2029

Summary

Regulatory clarity: The Directorate General of Foreign Trade issues a fresh authorization allowing nominated banks to import gold and silver.

Multi-year window: Selected banks including State Bank of India, HDFC Bank, and ICICI Bank receive permissions extending to March 31, 2029.

Supply relief: The move is expected to ease tight domestic supply conditions ahead of the Akshaya Tritiya demand cycle.

NEW DELHI, April 17, 2026 — India’s bullion market received a much-needed regulatory reset on Friday as the Directorate General of Foreign Trade (DGFT) issued a fresh notification authorizing nominated banks to import gold and silver under a renewed multi-year framework.

The decision restores operational continuity in a market that had seen temporary disruptions at the start of the financial year due to the lapse of previous import permissions.

Release of pending shipments

Industry participants had reported delays in clearing certain bullion consignments after March 31, when the earlier authorization cycle ended. With the new notification now in place, banks can resume import operations and process pending shipments, helping normalize supply flows in the domestic market.

While exact volumes of delayed consignments vary across estimates, traders indicated that the pause had begun tightening availability and pushing local premiums above international benchmarks.

Authorized banks and framework

Under the updated framework, major public and private sector lenders—including State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank—are among those permitted to import both gold and silver.

The authorization is valid until March 31, 2029, providing medium-term visibility to banks and bullion dealers. As in previous frameworks, certain institutions may have differentiated permissions based on regulatory classification and trade specialization.

Timing and market dynamics

The timing of the notification is significant. India is approaching Akshaya Tritiya, one of the most important gold-buying festivals, when demand from households and jewellers typically surges.

Any prolonged disruption in imports during this period could have led to sharper price volatility in the domestic market. The renewed authorization is expected to stabilize supply chains and reduce speculative premiums.

Market participants also note that bullion imports are closely linked to India’s current account dynamics, as gold remains one of the country’s largest import categories.

Why this matters

Price alignment: Resumption of imports will help narrow the gap between domestic and global gold prices by easing supply-side constraints.

Jewellery sector support: Stable bullion availability is critical for jewellers ahead of peak seasonal demand periods like Akshaya Tritiya.

Policy continuity: A multi-year authorization framework provides predictability for banks and traders, improving contract planning and import efficiency.

FAQs

Q1. Why were bullion imports delayed earlier?

Import permissions for nominated agencies are typically renewed periodically. A gap between expiry and renewal can temporarily slow down customs clearance and new shipments.

Q2. Which banks can import gold and silver?

Major public and private sector banks such as SBI, HDFC Bank, ICICI Bank, and others are authorized, subject to DGFT guidelines and RBI norms.

Q3. Will this impact gold prices in India?

Improved supply is expected to reduce domestic premiums and bring prices closer to international levels, although global factors will still drive overall price trends.