India Now Allowing Imports of Gold Coins and Medallions

The Bullion Desk reported that India’s central bank has axed a ban on importing gold coins and medallions.

As quoted in the market news:

Nominated banks are now permitted to import gold on a consignment basis, although all domestically sold gold will be against upfront payments, the Reserve Bank of India said on a statement.

This revives a system that was in place for 15 years – under which banks borrowed gold from international bullion banks to lend to domestic jewellers – until it was banned in 2014. But a spike in smuggling and lobbying by the country’s jewellery industry have persuaded New Delhi to relax its import curbs.

The bank said:

While the import of gold coins and medallions will no longer be prohibited, pending further review, the restrictions on banks in selling gold coins and medallions are not being removed.

Click here to read the full report from The Bullion Desk.