RBI revises gold import norms for authorised agencies

The Reserve Bank of India (RBI) on Tuesday issued modified instructions on import of various forms of gold by nominated agencies.

While import of gold in the form of coins and medallions is now prohibited, RBI has clarified that importers must ensure that at least one-fifth (20 per cent) of every lot of gold imported to the country is exclusively made available for the purpose of exports and the balance for domestic use.

The working of the 20:80 scheme will be monitored by customs authorities, and will be implemented port-wise only, RBI said.

Further, nominated banks / nominated agencies and other entities should make available gold for domestic use only to the entities engaged in jewellery business / bullion dealers and to banks authorised to administer the Gold Deposit Scheme against full upfront payment.

Supply of gold in any form to the domestic users other than against full payment upfront will not be permitted, RBI said.

Also, importers should ensure that there is no front loading of imports, particularly in the first and second lots of imports. Such imports should be linked to normal quantities of gold supplied to the exporters by the nominated banks/agencies and should not exceed the highest quantity supplied during any one year out of last three years.