Indian Banks Stop Gold, Silver Imports Due To Govt Clearance Delays: Report

Fri Apr 17 2026

Indian banks have stopped placing gold and silver import orders from foreign suppliers, with tons of these metals stuck at customs because the government has not yet issued a formal order allowing bullion imports, according to trade sources.

Without new imports, India could face shortages, since it is the world’s second-largest gold consumer and the biggest silver buyer, depending almost entirely on imports to meet demand. Weak demand in India could lower global gold and silver prices, reduce the country’s trade deficit, and support the rupee, which has been one of the worst-performing Asian currencies this year.

Authorities have taken several steps to ease pressure on the currency, including recently asking refineries to limit their spot dollar purchases. The stoppage of gold and silver import orders by Indian banks and the tons of metals stuck at customs due to the lack of a government order have not been reported before.

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, usually issues an order at the start of each financial year listing banks authorized by the Reserve Bank of India to import gold and silver. The last order, issued in April 2025, was valid until March 31, and banks are now waiting for a new DGFT directive.

The DGFT did not immediately respond to a Reuters request for comment.

Banks expected the DGFT to issue the order in early April as usual, but with no update yet, more than 5 tons of gold are stuck without customs clearance, said a Mumbai-based bullion dealer at a private bank. Uncertainty about when the DGFT order will come has led banks to stop new import orders from foreign suppliers, said the dealer, who did not want to be named because he was not authorized to speak to the media. About 8 tons of imported silver is also stuck without customs clearance, sources said.

There is no point in placing new orders when earlier shipments cannot be cleared, another bullion dealer said. India’s gold demand in 2025 fell to 710.9 metric tons, the lowest in five years, according to the World Gold Council. Gold and silver stocks from previous imports are running low, and the market is now relying on sales from exchange-traded funds, which are seeing redemptions, sources said.

“There is a need to bring clarity and make sure imports resume," said Surendra Mehta, secretary at the India Bullion and Jewellers Association. Without imports, shortages will happen and premiums will rise after Akshaya Tritiya, Mehta said, referring to India’s second-biggest gold-buying festival.

As the Iran conflict has pushed up prices of oil, gas, and fertilizer, India’s import bill is likely to rise in April, which may have led the government to slow gold and silver imports to control the trade deficit, said a bullion dealer in Kolkata.

Source: https://www.news18.com