Reserve bank of India
A.P. (DIR Series) Circular No.107
June 4, 2013
To
All Scheduled Commercial Banks which are
Authorised Dealers (ADs) in Foreign Exchange/ All agencies
nominated for import of gold
Madam/Sir
Import of Gold by Nominated Banks /Agencies
Attention of Authorised Persons is drawn to our
A.P. (DIR Series) Circular
No. 103 dated May 13, 2013 on the captioned subject in terms of which, it was
decided to restrict the import of gold on consignment basis by banks, only to
meet the genuine needs of the exporters of gold jewellery. It has now been
decided to extend the provisions of this circular to all nominated agencies/
premier / star trading houses who have been permitted by Government of India to
import gold. Accordingly, any import of gold on consignment basis by both
nominated agencies and banks shall now be permissible only to meet the needs of
exporters of gold jewellery.
- It has further been decided that all Letters of Credit (LC) to be opened
by Nominated Banks / Agencies for import of gold under all categories will
be only on 100 per cent cash margin basis. Further, all imports of gold will
necessarily have to be on Documents against Payment (DP) basis. Accordingly,
gold imports on Documents against Acceptance (DA) basis will not be
permitted. These restrictions will however not apply to import of gold to
meet the needs of exporters of gold jewellery.
- The above instructions will come into force with immediate effect. ADs
may bring the contents of this circular to the notice of their constituents
and customers concerned. They are also advised to strictly ensure that
foreign exchange transactions effected by / for their constituents are
compliant with these instructions in letter and spirit.
- All other instructions relating to import of gold issued from time to
time shall remain unchanged.
- The directions contained in this circular have been issued under Section
10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999
(42 of 1999) and are without prejudice to permissions / approvals, if any,
required under any other law.
Yours faithfully,
(C D Srinivasan)
Chief General Manager
RBI/2012-13/520