Page 29 - Bullion world volume 4 issue 6 june 2024

Bullion World | Volume 4 | Issue 6 | June 2024

ornaments of more than 14 carat purity. Over the years, Nominated Banks and Agencies had
• In September 1968, the Gold (Control) Act 1968 adapted and gained experience to various changes/
came into existence. modification in the rules and regulations to get
• The Special Import License Scheme was introduced synchronized along-with the changes in the international
which ultimately came into licensing for Nominating environment.
Banks and Agencies to import gold/Silver
Significance of Nominated Bullion Banks:
The industry is regulated by the Government of India India is making every attempt to rise higher by
through: achieving higher economic growth in every sector.
Nominated Banks play a major and important role in
• Ministry of Finance and the development of India’s Gold Industry. The banking
• Ministry of Commerce. expertise gained over two decades aid in developing a
bullion banking ecosystem.
Ministry of Finance has empowered Reserve Bank of
India (RBI), as the apex body to Nominate banks for At present, Government of India has regulated the import
Bullion imports and also the International Financial of gold as below:
Services Centres Authority (IFSCA) to regulate trades/ Dore Gold imports with Actual User (AU) condition
imports through IIBX Ltd. where in the refiners are provided license by Directorate
General of Foreign Trade (DGFT) to import Dore gold for
Directorate General of Foreign Trade (DGFT), under refining.
Ministry of Commerce monitors the imports by Refined Gold can be imported through:
Nominated agencies. The operations of the bullion
imports are under the guidelines of Customs authorities • Nominated Agencies – MSTC Ltd, HHEC, Others
under the Ministry of Finance. • Nominated Banks – 14 Banks for FY 24-25 (3 Banks
can import only gold)
In the case of Nominated Banks, RBI plays a significant • Export oriented units (EOUs) / units in Special
role, besides the management of gold reserves, in terms Economic Zones (SEZs)
of monitoring and governance of imports and bullion • India International Bullion Exchange (IFSC) Ltd
products. • Against Advance authorisation from DGFT for export
purposes
Advent of the Nominated Banks in 1998:
In 1998, Government of India permitted nominated Nominated Banks have committed themselves to
agencies viz. MMTC, HHEC, STC, etc., and also banks the Gold/Silver industry giving the regulators ease
authorized by Reserve Bank to import and sell Gold and of monitoring and regulating the industry as per
Silver. The Nominated Agencies and Banks were allowed government policies. The global trade of gold and Silver
to import gold under different arrangements with their are mostly through International Bullion Banks who
foreign suppliers, presently done as below: remain the major suppliers to India. The supply to India
by the International Bullion Banks to Nominated Banks/
• Import of gold on loan basis Agencies are based on certain arrangements which is
• Import of gold on consignment basis set through their credit appraisal.
• Import of gold on unfix basis.
Recent Developments:
With the mix of the above arrangements in importing Global trade is presently fraught with increasing
gold, the banks were able to serve all segments of complexities in the modern world. Every country across
the gem and jewellery industry according to their the globe is leaning towards protecting their economy.
requirements. All the contributors to gem and jewellery India is motoring ahead with the vision of being a
sector such as Traders, Jewellers, Large scale Jewellery developed nation by 2047. This aspiration is resulting
Manufacturers, Merchant exporters, manufacturer cum in forging of numerous trades, bilateral and multilateral
exporter, and the small artisans across the country were relationships with different countries and world
covered by Nominated Banks and Agencies. organizations.

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