"Refineries are allowed to import dore up to 15 percent 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,” RBI said in a communications to banks.
 
"Subsequent to this, the quantum of gold dore to be imported should be determined lot-wise on the basis of export performance," RBI added.

In August, the Reserve Bank had imposed curbs on gold imports and linked it with exports. Accordingly, 20 percent of every lot of gold imported had to be exclusively made available for exports and the balance (80 percent) for domestic use. The 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 percent 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, both the government and RBI had imposed curbs on gold imports.

(Agencies)

Latest News  from Business News Desk