1. Home
  2.  |  
  3. Economy Current Affairs  |  

RBI issued Guidelines on Import of Gold by Nominated Banks and Agencies

Feb 19, 2015 14:14 IST

Reserve Bank of India (RBI) on 18 February 2015 issued operational aspects of the guidelines on import of gold under 20: 80 Scheme by nominated banks and agencies.

The RBI issued the guidelines in consultation with the Union Government. It issued the guidelines after it received the requests for clarification on some of the operational aspects of the guidelines on import of gold consequent upon the withdrawal of 20:80 scheme on 28 November 2014.

RBI issued the guidelines under Section 10 (4) and Section 11 (1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999).

The guidelines include:
• The obligation to export under the 20:80 scheme will continue to apply in respect of unutilised gold imported before 28 November 2014 when the scheme was withdrawn.
• The nominated banks are now permitted to import gold on consignment basis, whereas, all sale of gold domestically will be against upfront payments.
• Banks can grant gold metal loans.
• Star and Premier Trading Houses (STH/PTH) can import gold on DP basis as per entitlement without any end use restrictions.
• The import on the gold coins and medallions will no longer be prohibited but the restrictions on banks in selling gold coins and medallions were not lifted up.

About 20:80 scheme
It was introduced by RBI in 2013, to bring down inbound shipments, to stop the sliding rupee and to combat a huge current account deficit (CAD).

Under the scheme, 20 percent of the imported gold had to be mandatorily exported as finished products like jewellery.


Is this article important for exams ? Yes25 People Agreed

Latest Videos

Register to get FREE updates

    All Fields Mandatory
  • (Ex:9123456789)
  • Please Select Your Interest
  • Please specify

  • ajax-loader
  • A verifcation code has been sent to
    your mobile number

    Please enter the verification code below

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK