Page 30 - Bullion world volume 4 issue 6 june 2024

Bullion World | Volume 4 | Issue 6 | June 2024
On 1st May 2022, Government of India and UAE signed
“Comprehensive Economic Partnership Agreement”
(CEPA). Under this agreement the import duty of gold
and silver originating from UAE will be given Import Duty
Concession.
Likewise, Government of India had further signed Trade
agreements with Australia “India-Australia Economic
Cooperation and Trade Agreement (INDAUS ECTA)”
and with the governments of EFTA states (Government
of Iceland, Principality of Liechtenstein, Kingdom of
Norway, and Swiss confederation) “Trade and Economic
Partnership Agreement” where country specific duty
concession was agreed. India-Australia Economic
Cooperation and Trade Agreement (INDAUS ECTA)
was signed without any changes to the gold and silver
industry.
Some of the other Schemes and developments in the
industry include:
• Gold Monetisation Scheme.
• GMS-linked Gold Metal Loan (GML) scheme.
• Mandatory Hallmarking and Assaying.
• Sovereign Gold Bond scheme.
Disclaimer:
This note is prepared to the best of our
knowledge. The views in the article are
personal and does not reflect / represent the
view of the Karur Vysya Bank. Readers are
advised to go through the relevant notifications
on the subject for further clarifications. Author
of this note and the Karur Vysya Bank Ltd
assumes no responsibility or liability for any
errors or omissions in the content and will
not be responsible for any damage or loss
or penalty levied in case of non-compliance
of stipulated rules and regulations by the
importers, exporters and any person/firm/
company attached to it.
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Way Forward:
In today’s age of growing conflicts and
distrust, every country is racing in its way
towards the, “Weaponization of Gold”.
Governments and Central Banks are
scampering to protect their interests through
a build-up of gold reserves and financial
inclusion of gold in the overall economy and
global trade. The Bullion banks will ensure
that all measures and developments are in
the interest of the country, its participants
and overall within the crafted Domestic and
International guidelines and regulations
like OECD rules, AML, FATF, Responsible
sourcing, etc. Bullion banks, through the
directions of the regulators, will feature
in developing these frontiers with their
professional experience, pool of knowledge
and global connect.
Bullion banks play a vital role in the
bullion eco-system in terms of imports
and regulations. They are the guardians
in carrying forward the policies of the
regulators & have a good grip of the bullion
supply chain from the originating supplies
to the end consumer. Banks act as the
intermediator in the supply chain and have
been bestowed with the responsibility
of carrying forward the essence of the
government policies in letter and spirit.
Our country is well poised to play an
important role in the global bullion market
with its robust regulatory environment
encouraging the complete bullion
ecosystem. It is not just going to be the flow
of bullion into India, but also influencing
global bullion markets.
By
Mr. Mahendran. K,
Country Head,
Precious Metals Division,
The Karur Vysya Bank Ltd.