Gold News

India Tightens Rules on Gold Bullion Imports

INDIA'S central bank this week announced tighter reporting requirements for banks that import Gold Bullion.

Under a new Reserve Bank of India directive, banks will be asked to report twice a year – in March and September – on the amount of Gold Bullion they have imported and its value, as well as the mode of payment.

In its documentation, the RBI lists modes of payment as i)Delivery against payment basis, ii) Suppliers credit basis, iii) Consignment basis and iv) Unfixed price basis.

Bullion banks will also have to submit a monthly statement showing the quantity and value of Gold Bullion imports, as well as their cumulative position as of the end of that month.

The RBI's announcement – which carries echoes of recent moves by China's authorities – comes as many of India's gold dealers are on strike following last month's decision to double the import duties on gold as well as expand the range of gold jewelry that is subject to excise duty. 

Finance minister Pranab Mukherjee has said he will meet jeweler association chiefs at the end of this week, according to newswire Reuters, and will consider demands to reverse the decision on excise duty. Mukherjee has said, however, that he will not change course on import duties.

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