Under the liberalised policy of import, Government of India has permitted import of gold by certain nominated agencies viz. MMTC, HHEC, STC, SBI and a few banks authorised by Reserve Bank for sale to jewellery manufacturers, exporters, NRIs, holders of Special Import licences and domestic users. Accordingly, Reserve Bank would permit the nominated agencies/banks to import gold under different arrangements, besides outright purchase on D/P basis, as follows:

(i) Import of Gold on loan basis Gold loan my be availed of by nominated agencies/banks, where the loan is denominated on the basis of the quantity of gold, subject to the following conditions -

(a) The loan shall be obtained directly from the overseas supplier.

(b) The period of loan shall not be more than 180 days from the date of shipment. Extension of period beyond 180 days will require prior approval of Central Office of Reserve Bank (Imports Division)

(c) Rate of interest on loan shall be as per the prevailing international practice.

(d) Metal account in the books of the overseas supplier, if required by the supplier, may be maintained by the nominated agency/bank for the purpose of routing the import transactions only. No deposits will be permitted.

(e) Guarantee for the loan, if required by the supplier may be furnished by the nominated agency/bank.

(ii) Import of gold on Suppliers credit/ Buyers credit basis Suppliers credit up to a period of 180 days may be availed of by the nominated agencies/banks subject to the provisions of paragraph 7A12. Prior approval of Reserve Bank will be required if the period of credit exceeds 180 days. However, buyers credit will require prior approval of Reserve Bank, irrespective of the period of credit.

(iii) Import of Gold on Consignment basis Gold may be imported by the nominated agencies/banks on consignment basis where the ownership of the goods will remain with the supplier and the importer (consignee) will be acting as an agent of the supplier (consignor). Remittances towards the cost of import shall be made as and when sales take place as per the provisions of agreement entered into between the overseas supplier and nominated agency/bank.

(iv) Import of gold on unfixed price basis

The nominated agency/bank may import gold on outright purchase basis subject to the condition that although ownership of the gold shall be passed on to the importer at the time of import itself, the price of gold shall be fixed later, as and when the importer sells the gold to the users.

NOTE: Instructions contained in this paragraph would also apply to import of platinum and silver.