RBI lifts ban on gold dore imports by refiners

NEW DELHI (Scrap Monster) : By partially lifting the ban on gold dore import, the Reserve Bank of India (RBI) has granted permission to the gold refiners to import up to 15 % of their gross annual requirement. The new move has been welcomed by the refineries as the dore import was banned to this date and the only option they had was by acquiring it through mine dore and scrap gold.

 

As per the new norms issued by RBI, gold refiners have been partly eased by the import restrictions that allow them to import 15 % of their annual gross requirement in the first two months based on their license entitlement. RBI further added that the quantum of gold import has to be settled on a First in First Out (FIFO) basis. In a communication to banks, RBI said that the import should be determined on the basis of the export performance in a lot-wise manner.

 

The new norms are anticipated to amplify domestic refinery capacity. It may also help in curbing the short supply of gold that the domestic jewelers and exporters are facing today. In one way or the other, the rule might also evade gold smuggling into India. This rule eases the 80:20 norms issued by the RBI according to which the Indian importers have to pay a 20 % premium for gold.

 

Author: Paul Ploumis