19 Feb 2015
Ban on import of gold coins, medallions by banks lifted– RBI
FXStreet (Mumbai) - The Reserve Bank of India (RBI) on Wednesday lifted the ban on imports of gold coins and medallions by banks and trading houses.
The RBI in a notification also said banks are permitted to import gold on consignment basis. Domestic sales will be, however, permitted against upfront payment only.
"While the import of gold coins and medallions will no longer be prohibited, pending further review, the restrictions on banks in selling gold coins.
The notification further said the obligation to export under the scheme will continue to apply in respect of unutilised gold imported before November 28, 2014.
"Banks are free to grant gold metal loans," it said, adding that Star and Premier Trading Houses (STH/PTH) can import the metal as per entitlement without any end use restrictions.
India is the largest importer of gold, which is mainly utilised to meet the demand of jewellery industry.
The RBI in a notification also said banks are permitted to import gold on consignment basis. Domestic sales will be, however, permitted against upfront payment only.
"While the import of gold coins and medallions will no longer be prohibited, pending further review, the restrictions on banks in selling gold coins.
The notification further said the obligation to export under the scheme will continue to apply in respect of unutilised gold imported before November 28, 2014.
"Banks are free to grant gold metal loans," it said, adding that Star and Premier Trading Houses (STH/PTH) can import the metal as per entitlement without any end use restrictions.
India is the largest importer of gold, which is mainly utilised to meet the demand of jewellery industry.