The Reserve Bank of India (RBI) said on Wednesday the import of gold coins and medallions will no longer be prohibited, pending further review, reports fe Bureau in Mumbai.
However, the limits on banks in selling gold coins and medallions are not being removed, the RBI said. Banks are free to grant gold metal loans, the RBI said, adding that rules relating to the 20:80 scheme on gold imports will apply only to all unused gold stock imported before November 28, 2014.
The 20:80 scheme had mandated that for every consignment of gold imports, at least a fifth should be used for exports before the next consignment was imported. Nominated banks are now permitted to import gold on a consignment basis but all sale of gold domestically will, however, be against upfront payments.