RBI lets jewellery exporters use bank loans to import gold
28 Jun 2013 11:08 PM GMT
The Reserve Bank of India (RBI) on Thursday said that jewellery exporters will be permitted to avail loans from banks and other institutions to import gold, a move which is aimed at encouraging exports.
The Reserve Bank, however, directed banks to ensure that bank credit is not available to entities which do not export jewellery export business.
‘Import of gold on loan basis may, however, continue to be allowed since the scheme envisages that the nominated banks/nominated agencies can import gold on loan basis for on-lending only to the exporters of jewellery in sync with the non-applicability of the above restrictions to exporters of gold jewellery,’ RBI said in a statement.
The Reserve Bank, however, directed banks to ensure that bank credit is not available to entities which do not export jewellery export business.
‘Import of gold on loan basis may, however, continue to be allowed since the scheme envisages that the nominated banks/nominated agencies can import gold on loan basis for on-lending only to the exporters of jewellery in sync with the non-applicability of the above restrictions to exporters of gold jewellery,’ RBI said in a statement.
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