RBI eases norms for gold dore imports

December 31, 2013 08:38 pm | Updated November 16, 2021 09:23 pm IST - Mumbai

Gold bars weighing one ton are at displayed in a vault at the Czech Central Bank in Prague, Czech Republic.The price of gold set a new record on Monday, Aug. 22, 2011,  soaring as high as 1,895  US dollars (1,313 euro)  an ounce, as investors anxious about the uncertain global economy continued to snap up the precious metal. (AP Photo/Petr David Josek) (AP Photo/Petr David Josek)

Gold bars weighing one ton are at displayed in a vault at the Czech Central Bank in Prague, Czech Republic.The price of gold set a new record on Monday, Aug. 22, 2011, soaring as high as 1,895 US dollars (1,313 euro) an ounce, as investors anxious about the uncertain global economy continued to snap up the precious metal. (AP Photo/Petr David Josek) (AP Photo/Petr David Josek)

The Reserve Bank of India, on Tuesday, partly eased restrictions on import of gold dore, by allowing refineries to import 15 per cent of their gross annual requirement in the first two months and the balance as per export performance.

“Refineries are allowed to import dore up to 15 per cent of their gross average viable quantity based on their licence entitlement in the first two months for making this available to the exporters on First in First out (FIFO) basis. Subsequent to this, the quantum of gold dore to be imported should be determined lot-wise on the basis of export performance,” the RBI said in a communications to banks.

In August, the RBI had imposed curbs on gold imports and linked it with exports. Accordingly, 20 per cent, of every lot of gold imported had to be exclusively made available for exports and the balance (80 per cent) for domestic use.

The government and the RBI have been receiving representations related to import of gold dore.

The RBI issued the instructions after taking into account the representations.

The central bank further said before the next import, not more than 80 per cent should be allowed to be sold domestically.

“The dore so imported shall be refined and shall be released based on FIFO basis following 20:80 principle,” the RBI said.

Amid widening current account deficit and sliding rupee, the RBI and the government had imposed curbs on gold imports.

Under FIFO methodology, the oldest entry, or bottom of the stack, is processed first.

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