- 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: http://www.thehindu.com/todays-paper/tp-business/rbi-eases-gold-import-norms/article6035136.ece
Exams Perspective:
- Bullion
- CAD
- Gold Metal Loans (GML)
