MANU/APDR/0025/2015

Ministry : Reserve Bank of India

Department/Board : RBI A.P. DIR (Series)

Circular No. : A. P. (DIR Series) Circular No. 79
                   RBI/2014-2015/474

Date : 18.02.2015

Notification/ Circulars Referred : A.P.(DIR Series) Circular No.42 dated November 28, 2014 MANU/APDR/0113/2014

Citing Reference:
A.P.(DIR Series) Circular No.42 dated November 28, 2014 MANU/APDR/0113/2014  Referred

To

All Category - I Authorised Dealer Banks

Madam / Sir,

Guidelines on Import of Gold by Nominated Banks / Agencies.

Attention of Authorised Dealer Category - I (AD Category - I) banks isinvited to the provisions contained in A.P.(DIR Series) Circular No.42 dated November 28, 2014 in terms of which the 20:80 scheme for import of gold was withdrawn in consultation with the Government .

2. The Reserve Bank of India and the Government has been receiving requests for clarification on some of the operational aspects of the guidelines on import of gold consequent upon the withdrawal of 20:80 scheme. Accordingly, in consultation with the Government, the following clarifications are issued:

i. The obligation to export under the 20:80 scheme will continue to apply in respect of unutilised gold imported before November 28, 2014, i.e., the date of abolition of the 20:80 scheme.

ii. Nominated banks are now permitted to import gold on consignment basis. All sale of gold domestically will, however, be against upfront payments. Banks are free to grant gold metal loans.

iii. Star and Premier Trading Houses (STH/PTH) can import gold on DP basis as per entitlement without any end use restrictions.