RBI announces major changes to gold import and gold loans

The Reserve Bank of India on Wednesday (February 18th 2015)  allowed nominated banks to provide gold on loan to jewellers.
The central bank also said there would be no restriction on import of gold coins, although commercial banks will still not be allowed to sell these in the home market. This was made available in a late evening notification which was issued to clarify the status of gold import after removal of the 80:20 scheme in end-November,

The impact was visible in the trading world as Jewellers and associated firms are bound to gain from the new policy announcement made by RBI.

Nominated banks for gold import would now be able to import gold, the precious yellow metal on consignment bases. Meaning, they can import and pay once they actually sell the gold and realise the payment. Banks can also provide gold on loan to jewellers.

This opens the gold import route further and addresses the liquidity crunch of jewellers, who were made to pay the full amount for buying gold since mid-2013. RBI has said sale of gold to jewellers will have to be against full payment only. Jewellers will, however, prefer to take it on loan rather than purchasing outright. Banks were importing much less gold since removal of the 80:20 scheme in end-November.

In another important clarification, RBI has allowed star and premium trading houses or status holder export houses to import gold without end-use restrictions. This means, said an analyst, that they will be able to import  by making full payment and can hold or even use that for trading. Regarding the export obligation prior to removal of 80:20, RBI has clarified, “The obligation will continue to apply in respect of unutilised gold imported before November 28, 2014, the date of abolition of the scheme.”  Since June 1, 2014, star and premier trading houses were importing almost 60-70 per cent of total imports.
RBI has also clarified that, “import of gold coins and medallions will no longer be prohibited.”  However, pending further review, the restrictions on banks in selling gold coins and medallions are not being removed.


Want to know more or need assistance to select the best policy for your needs, fill up a simple form with QUICK APPLY and we shall revert to you with the best options available from the market!!!

Disclaimer: Please note that the information provided is collected from sources publicly available & we believe to be reliable. The website doesn’t warrant the accuracy, reliability & absolute information available on the website. Participation by site visitors or registered customers is on a voluntary basis. The policies are offered by various life Insurance & non-life insurance offering companies and eMediclaim does not seek to, either directly or indirectly, advise, offer, solicit or recommend that any person who is or proposes to become its member should purchase the Policy.
The logos displayed on this site in no way indicate tie up of the respective logo owners with eMediclaim Portal. or any affiliation what so ever between eMediclaim and respective logo owners. Should you have any objection to use of public information on this site, please contact us and we shall remove the content that you feel is not in public interest or has a copyright which prevents it to be displayed on eMediclaim.com website.

Insurance is the Subject matter of Solicitation.

 

Get FREE Quote

Quick Apply
Product
Name
Mobile +91
Email
City
I have read the Privacy Policy and agree to the Terms And Conditions

Partners

Alexa Status

Related Insurance Articles


Newsflash

Insurance Must for Foreign Students in Delhi University

Announcement by Delhi University Foreign Students Registry has declared that All the Foreign students must have some medical insurance, having evacuation clauses, before joining the University.

In a notification on DU website, students have been adviced to seek admission and provide medical insurance papers, to be eligible to pursue courses in India's premier university.