Indian Central Bank Declared Fresh Norms for Gold Imports

SEATTLE (Scrap Monster): The Reserve Bank of India (RBI) announced norms for physical gold imports by qualified importers through India International Bullion Exchange IFSC (IIBX) or similar authorized exchanges. It must be noted that qualified jewellers were allowed to import gold following approval by the International Financial Services Centers Authority (IFSCA) in January this year.

The new guidelines pertain to gold imports by resident qualified jewellers through IIBX or any other exchange approved by IFSCA and the Directorate General of Foreign Trade (DGFT).

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As per the new guidelines, qualified imports may be allowed by banks to remit advance payments for 11 days for import of gold through IIBX in adherence to the extant Foreign Trade Policy and regulations. However, it clearly states that the advance remittance should not be leveraged in any form whatsoever for importing gold worth more than the advance remittance made.

In the event of non-materialization of gold import through authorized exchange, for which advance remittance has been made, the unutilized advance amount must be remitted back to the same bank within 11 days. Furthermore, all payments by qualified jewellers must be through IFSCA-approved exchange mechanism.