NDA Govt eases curbs on gold imports, scraps 80:20 scheme Friday Nov 28,2014

 

Easing the restrictions on gold imports, the government has done away with the '80:20' scheme, freeing incoming shipments of the precious metal from exports.

Under the 80:20 norms, 20 percent of the imported gold had to be mandatorily exported before bringing in new lot.

"We believe the move will do away with the distortions and calm the market which was anticipating some curbs to restrict gold imports," an official said

Note
The 80:20 scheme was put in place in August 2013 to curb gold imports, considered a major cause for the widening current account deficit (CAD).

The outgoing government in May 2014 relaxed the norms and permitted six private sector trading firms to import the gold under the 80:20 scheme.