Categories: Bank News

RBI clarifies on operational aspect of 20:80 gold import scheme

Reserve Bank of India abolished 20:80 gold import schemes on November 28, 2014. The regulator has clarified in this regard that the obligation to export under the scheme will continue to apply in respect of unutilized gold imported before November 28, 2014.

Further it is advised that the nominated banks are now permitted to import gold on consignment basis. However, all domestic sale of gold will be against upfront payments and banks are free to grant gold metal loans.

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

Though the import of gold coins and medallions will no longer be prohibited, for the time being, the restrictions on banks in selling gold coins and medallions are not removed.

Surendra Naik

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Surendra Naik

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