On Wednesday, the RBI proposed standards to facilitate the physical import of gold through India International Bullion Exchange IFSC (IIBX) or a similar exchange authorized by qualified jewelers in India.
In addition to RBI and DGFT appointed agencies, Qualified Jewelers (QJs) approved by the International Financial Services Centers Authority (IFSCA) were allowed to import gold in January.
The RBI has issued the guidelines in order to allow resident qualified jewelers to import gold through IIBX or any other exchange approved by the IFSCA and the Directorate General of Foreign Trade (DGFT).
According to the guidelines, banks may allow qualified jewelers to make deposit payments for 11 days for the import of gold through IIBX, in accordance with the applicable foreign trade policy and regulations issued under the IFSC law.
“The advance payment for the import of gold should not be used in any form to import gold of a value greater than the advance payment made,” said the said the Reserve Bank of India.
In the event that the import of gold through an exchange authorized by the IFSCA, for which an advance payment has been made, does not materialize, or if the advance payment made for this purpose exceeds the amount required, the unused advance payment will be returned to the same bank. within the time limit of 11 days.
RBI also said that all payments by qualified jewelers for gold imports through IIBX will be made through an IFSCA-approved exchange mechanism.
Gold imports fell about 72% to $1.72 billion in April from $6.23 billion the previous month.
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