The scheme was introduced in in August
2013 with the aim of curbing gold imports.
Under the scheme, up to 80% of gold imports could be sold in the country and while at least 20% of imports had to be exported before bringing in new consignments of the yellow metal.
Further, the permission to import the next lot given only upon fulfilment of the export mandate.
The policy was aimed at tackling the widening fiscal deficit.
Within six months of the NDA-government taking charge, the 80:20 rule was scrapped. In a RBI circular dated August 2013, the central bank said that announced that the Government of India has decided to withdraw the 20:80 scheme and the restrictions placed on the import of gold. “Accordingly, all instructions issued about the scheme from time to time starting with circular number 25 dated August 14, 2013 stand withdrawn with immediate effect,” the RBI said.
A CAG report published in 2016 found that the 80:20 scheme had resulted in a loss of Rs 1 lakh crore to the exchequer.
Under the scheme, up to 80% of gold imports could be sold in the country and while at least 20% of imports had to be exported before bringing in new consignments of the yellow metal.
Further, the permission to import the next lot given only upon fulfilment of the export mandate.
The policy was aimed at tackling the widening fiscal deficit.
Within six months of the NDA-government taking charge, the 80:20 rule was scrapped. In a RBI circular dated August 2013, the central bank said that announced that the Government of India has decided to withdraw the 20:80 scheme and the restrictions placed on the import of gold. “Accordingly, all instructions issued about the scheme from time to time starting with circular number 25 dated August 14, 2013 stand withdrawn with immediate effect,” the RBI said.
A CAG report published in 2016 found that the 80:20 scheme had resulted in a loss of Rs 1 lakh crore to the exchequer.
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