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