Reserve Bank of India issues norms for import of gold by jewellers

Highlights

RBI on Wednesday came up with norms for facilitating physical import of gold through IIBX
RBI issued guidelines in order to enable resident Qualified Jewellers to import gold through IIBX
Gold imports dipped by about 72 per cent to USD 1.72 billion during April

The Reserve Bank of India (RBI) on Wednesday (May 25) came up with norms for facilitating physical import of gold through India International Bullion Exchange IFSC (IIBX) or similar authorised exchange by Qualified Jewellers in India.

In addition to agencies nominated by the RBI and by DGFT, Qualified Jewellers (QJ) as approved by International Financial Services Centers Authority (IFSCA) were permitted to import gold in January.

The RBI issued the guidelines in order to enable resident Qualified Jewellers to import gold through IIBX or any other exchange approved by IFSCA and the Directorate General of Foreign Trade (DGFT).

As per the guidelines, banks may allow Qualified Jewellers to remit advance payments for 11 days for import of gold through IIBX in compliance to the extant Foreign Trade Policy and regulations issued under IFSC Act.

What more RBI said in this regard?

"The advance remittance for import of Gold should not be leveraged in what-so-ever form for importing gold worth more than the advance remittance made," the Reserve Bank of India said.

In case the import of gold through IFSCA authorised exchange, for which advance remittance has been made, does not materialise, or the advance remittance made for the purpose is more than the amount required, the unutilised advance remittance shall be remitted back to the same bank within the specified time limit of 11 days.

RBI also said all payments by qualified jewellers for imports of gold through IIBX, shall be made through exchange mechanism as approved by IFSCA.

Gold imports dipped by about 72 per cent to USD 1.72 billion during April, from USD 6.23 billion in the year-ago month.