Reserve Bank of India’s (RBI) Restrict Gold Imports - Monday May 13,2013

Gold can be imported by around 30 channel agencies, including banks and non-banks

 India imported 1,015 tonnes of gold in 2012-13 and 65% was on a consignment basis

When imported on a consignment basis, by banks on behalf of buyers, buyers do not finance purchases, and unsold gold can be returned after 30 days.

The Reserve Bank of India (RBI), on Monday May 13,2013, imposed restrictions on banks to import gold with immediate effect to curb the widening current account deficit (CAD).

“To moderate the demand for gold for domestic use, it has been decided to restrict the import of gold on consignment basis by banks, only to meet the genuine needs of exporters of gold jewellery,” RBI said in a notification.