Gold Import Norms Eased

Decline In Gold Import Narrows Trade Deficit
  • Following representations made by jewellers and bullion dealers, the RBI has permitted star trading houses (STH) and premier trading houses (PTH) to import gold under the 20:80 scheme.
  • Accordingly:
    • Gold can be purchased by the importer, provided that 1/5th of the imported gold is exported as finished products like jewellery.
    • Banks are also permitted to provide gold metal loans (GML) to domestic jewellery manufacturers out of the eligible domestic import quota to the extent of GML.
  • This will increase the number of institutions importing gold, debottleneck the supply of gold and bring down prices.
  • Read at:

Exams Perspective:

  1. Bullion
  2. CAD
  3. Gold Metal Loans (GML)