The Reserve Bank of India (RBI) on Friday said the government had decided to withdraw the 20:80 scheme and other restrictions placed on import of gold.
“All instructions issued about the scheme from time to time starting with August 14, 2013, stand withdrawn with immediate effect,” said the RBI.
As per the August 14, 2013 circular, the RBI had prohibited the import of gold in the form of coins and medallions.
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Further, the RBI had instructed all nominated banks/nominated agencies and other entities to ensure that at least one fifth, that is, 20 per cent, of every lot of import of gold imported to the country is exclusively made available for the purpose of exports and the balance for domestic use.
It had also asked them to make available gold for domestic use, only to the entities engaged in jewellery business/bullion dealers and to banks authorised to administer the gold deposit scheme against full upfront payment. In other words, supply of gold in any form to the domestic users other than against full payment upfront was not permitted.
PTI reports:
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Easing the restrictions on gold imports, the government has done away with the ‘20-80’ scheme, freeing incoming shipments of the precious metal from exports.
Under the 20:80 norms, 20 per cent of the imported gold had to be mandatorily exported before bringing in new lot.
Initially under the 20:80 scheme, only state-owned firms and banks were permitted to import.
The six private firms, which were given relaxation, accounted for 40 per cent of the total gold imports in April-September, sources said.
Gold imports jumped 280 per cent to $4.17 billion in October, trade data showed.
India imported 95,673 kg of gold in September, the highest level in the first six months of this financial year.
In August, imports stood at 50,213 kg.
Imports of the precious metal in April, May, June and July were 43,207 kg, 52,612 kg, 77,681 kg and 45,269 kg, respectively.