RBI eases gold dore import norms; allows refineries to import 15% of their annual requirements in first two months
In consultation with the Government of India, the Reserve Bank of India (RBI) partially eased restrictions on import of gold dore after taking into account representations from refiners. As per the new norms –
- Refineries are allowed to import dore up to 15% of their gross average feasible 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. Following to this, the quantum of gold dore to be imported should be determined lot-wise on the basis of export performance.
- Before the next import, not more than 80% 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.
- The imports will be allowed only up to 5 times the quantum for which proof of export has been submitted.
Note: In August, the RBI had imposed curbs on gold imports and linked it with exports. Consequently, 20% of every lot of gold imported had to be exclusively made available for exports and the balance for domestic use.
What is Gold Dore?
Gold doré (pronounced gold doh-rey) is a bar of semi-purified gold (e.g. bullion). After being mined, the first stage in the purification process of the gold ore produces a cast bar (gold dore) that is approximately 90% gold. The other 10% is mostly metals like silver and copper.