The Reserve Bank of India (RBI) yesterday issued a new notification easing some of the earlier restrictions that had been placed on import of gold, particularly indicating that import of gold on a consignment basis by banks will now be permitted. It, however, indicated that all shipments of gold for domestic sale will only be permitted against upfront payments.

Ever since the government issued a circular in November 2014 withdrawing the 80:20 rule, industry bodies have been seeking clarifications on some aspects of policy and a number of procedural issues. The RBI notification seeks to provide clarity on some of these points.

While lifting the earlier prohibition on the import of gold coins and medallions by banks and other nominated agencies, the notification added that pending further review, the restrictions on banks selling gold coins and medallions are not being removed.

Clarifying two other important issues that has been raised by trade bodies, the RBI said that banks are free to grant gold metal loans and that Star and Premier Trading Houses (STH/PTH) can import the metal as per entitlement without any end use restrictions.

It notes that for all unutilised gold imported before the date of abolition of the 80:20 scheme, export onbligations as per the old policy would continue to apply.