IBJA submits draft of good delivery rules to government

India Bullion & Jewellers Association ( IBJA) has submitted the draft of the `Good Delivery Rules' for gold and silver bars to the government.The good delivery bar is to be produced by Indian refiners by adhering to quality standards followed by global benchmark LBMA.

The rules on networth and quantity followed by LBMA will be diluted as most gold refiners here lack the economies of scale existing overseas, said Rajesh Khosla, director, IBJA. ET had first reported about an India Good Delivery Gold Bar in its edition of April 24, 2017.

IBJA has called for public comments on the draft over the next two weeks. It could incorporate some of these suggestions and submit an updated draft to the government, which is expected to use part of these inputs in formulating a gold policy.

The idea behind a good delivery gold bar is to harness above ground gold held by individuals and temple trusts, refine these into standard quality gold bars, which could be used by banks to sell them to jewellers, etc.