Minews - Indian banks allowed to import gold on consignment basis

(Minews) - The Reserve Bank of India (RBI) on Wednesday said nominated banks were now permitted to import gold on consignment basis.

“All sale of gold domestically will, however, be against upfront payments,” said the RBI, adding, “Banks are free to grant gold metal loans.”

In a notification to banks, the central bank also said that Star and Premier Trading Houses can “import gold on documents against payment basis as per entitlement without any end use restrictions.

While the import of gold coins and medallions will no longer be prohibited, pending further review, the restrictions on banks in selling gold coins and medallions are not being removed, it added.

The RBI further said the obligation to export under the 20:80 scheme (for import of gold) will continue to apply in respect of unutilised gold imported before November 28, 2014, the date of abolition of the 20:80 scheme.