To further dampen gold imports, the Reserve Bank of India today directed nominated banks/agencies to ensure that at least 20 per cent of every lot of import is exported.

This move comes in the backdrop of the hike in the import duty to 8 per cent from 6 per cent in June to moderate gold demand.

Unrelenting import of the yellow metal has been one of the main reasons for the rupee weakening against the dollar. In its latest salvo against gold import, the RBI said the imports (in any form/purity including import of gold coins/dore — an alloy of gold and silver) will now be linked to financing of exporters by the nominated agencies.

Domestic use

Further, banks/agencies will make available gold in any form for domestic use only to entities engaged in jewellery business or to bullion dealers supplying jewellers.

The RBI said banks/agencies will be required to retain 20 per cent of the imported (gold) quantity in Customs bonded warehouses.

Fresh imports can be undertaken only after at least 75 per cent of gold remaining in the Customs bonded warehouse has been exported.

Entities/units in special economic zones and export-oriented units as also premier and star trading houses can import gold only for the purpose of exports.

The RBI said the Government will issue separate instructions, if any, to the Customs authorities/Directorate-General of Foreign Trade to operationalise and monitor these restrictions

With the RBI, in consultation with the Government, tightening the gold import norms, it has withdrawn the extant instructions on import of gold on consignment basis and Letter of Credit restrictions.

Following the hike in the import duty on gold, imports slumped 81 per cent to 31.5 tonnes in June from 162 tonnes in May.

>ramkumar.k@thehindu.co.in

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