RBI further tightens norms on gold imports

The Reserve Bank of India (RBI) has asked the banks not to sell gold imported on consignment basis to jewellers on outright basis, says a report. This will further tighten the supply of gold as the jewellers will have to wait for delivery after placing the import order with importing agency, says a report.

As per the new directive, RBI has said that gold imported on consignment basis, where payment is to be made after realisation of money after sale, can be used only for providing gold metal loans to jewellers. The loan is for tenure of 180 days.

In February 2015, the RBI had allowed banks to import gold on consignment basis and also allowed them to provide gold metal loans to jewellers. However, banks were found importing gold on consignment basis and selling that to jewellers against full payment. This has increased imports as jewellers were buying gold virtually off the shelf. Banks were also considering gold imported on consignment basis to provide gold metal loans to jewellers, adds a report.