Reserve bank of India
A.P. (DIR Series) Circular No. 122
June 27, 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 &
A.P. (DIR Series) Circular No. 107 dated June 04,
2013 on the captioned subject in terms of which, it was decided to restrict the
import of gold on consignment basis by banks, nominated agencies/ premier / star
trading houses who have been permitted by Government of India, to import gold
only to meet the genuine needs of the exporters of gold jewellery. Further, it
was advised 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 and 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.
- It is clarified that, consequent upon the issue of above
instructions, import of gold against suppliers/buyers credit, as also import
of gold on unfixed price basis has to necessarily observe the discipline
stipulated relating to cash margins and Documents against Payment (DP)
basis. In other words, AD Category I Banks are required to ensure that
credit in any form or name is not enabled for import of any form of gold.
Import of gold on loan basis may, however, continue to be allowed since the
scheme envisages that the nominated banks/nominated agencies can import gold
on loan basis for on-lending only to the exporters of jewellery in sync with
the non-applicability of the above restrictions to exporters of gold
jewellery.
- AD Category I Banks are advised to strictly ensure that foreign
exchange transactions effected by / for their constituents are compliant
with these instructions.
- All other instructions relating to import of gold issued from time to
time shall remain unchanged.
- 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.
- 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,
(Rudra Narayan Kar)
Chief General Manager-in-Charge
RBI/2012-13/557