Reserve Bank of India imposed Restrictions on Imports of Gold
The Reserve Bank of India on 22 July 2013 imposed certain restrictions on the import of various forms of gold.
The Reserve Bank of India on 22 July 2013 imposed certain restrictions on the import of various forms of gold by nominated banks, agencies, premier or star trading houses, SEZ units, EoUs which have been permitted to import gold for use in the domestic sector. In order to narrow down the Current Account Deficit - CAD and to arrest the fall of rupee, the Reserve Bank decided to rationalise the import of gold including import of gold coins into the country.
In the revised scheme for gold imports, RBI asked nominated banks and agencies to ensure that at least one fifth of every lot of gold imported - in any form or purity - is exclusively made available for the purpose of export. They have been asked to sell gold for domestic use only to entities engaged in jewellery business or bullion dealers supplying gold to jewelers.
Further, these banks and agencies will be required to retain 20 per cent of the imported quantity of gold in the customs bonded warehouses. Fresh imports will only be permitted only after the export of atleast 75 percent of the retained quantity that lies in the customs bonded warehouse.
The Reserve Bank of India has brought down the period of realisation and repatriation for exporters of goods and software to nine months from earlier 12 months. This move could shore up foreign exchange inflows. Last November, RBI had increased the time limit to bring in export earnings to 12 months, from six months at that time, in view of global slowdown. Industry experts said this step has been taken by the Apex bank as the country is facing a worsening Current Account Deficit and the weakening of the rupee against the US dollar. The rupee has depreciated by over 12 per cent against the dollar since the beginning of this fiscal.
The Reserve Bank of India has started scrutiny of nearly 3 thousand companies which could be carrying out non-banking finance operations without requisite registration. The step has been initiated by the Apex Bank in the wake of concerns about their actual business activities.
The Reserve bank's move comes against the backdrop of the government efforts to crackdown on entities that are illegally raising large amounts of money from the public. The Reserve bank has sought details from the companies about their financials, including balance sheets, for the last three years, among others.