RBI relaxes gold imports norms in India
By GCRU Gold News on Friday, May 23 2014, 08:28 - Permalink
In a major breather to the bullion industry, the Reserve Bank of India has liberalised gold import norms by allowing select trading houses, in addition to already permitted banks, to procure the precious metal to boost exports.
Though the 80:20 rule has not been changed, top export houses are now allowed to import the commodity. Some banks and nominated agencies were already providing gold for domestic use as loans to jewellers and bullion traders.
The new norms come into force with immediate effect, as of late May 21, and encompass seven private agencies according to Reuters. The decision started showing results right away, with the price of gold dropping $8.55 in the Mumbai market, at the end of day.
The RBI decision is set to increase the supply of gold and bring down prices considerably, say traders. "The move will increase monthly average gold import from 25-30 tonnes to 50-60 tonnes.