RBI eases norms for gold dore imports

MUMBAI: The Reserve Bank partly eased restrictions on import of gold dore by allowing refineries to import 15 per cent of their gross annual requirement in first two months and remaining as per export performance.

"Refineries are allowed to import dore up to 15 per cent of their gross average viable quantity based on their license 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," 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.

Government and 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," RBI said.

Amid widening Current Account Deficit and sliding rupee, the both RBI and Government had imposed curbs on gold imports.

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