RBI issued a circular (RBI/2013-14/148 A.P. (DIR Series) Circular No.15 dated 22.07.13 with regard to import of gold by all scheduled commercial banks which are authorised dealers in foreign exchange and all agencies nominated for the same. As already, the industry is facing a huge crisis with restriction on gold imports by the government. For the past several weeks, GJF was been relentlessly pursuing and meeting with government officials to push the cause of the gems and jewellery industry. GJF is now contented that one of the important issues they had frequently brought up has now been addressed by the Government. In the recent circular issued by RBI, instructions regarding import of gold on consignment basis, LC restrictions have been withdrawn. Synopsis of Recent RBI Circular : The Government has decided to rationalise the import of gold in any form/purity including import of gold coins/dore into the country. All nominated banks/agencies will have to ensure that at least one fifth of every lot of import of gold in any form including gold coins is exclusively made available for export purposes. Such imports will be linked to financing of exporters by the nominated agencies. Jewellery business/bullion dealers will be supplied gold in any form for domestic use only. 20% of imported quantity of gold will have to be retained in custom bonded warehouses. Fresh imports of gold will be permitted after at least 75% of gold remaining in customs bonded warehouses is exported. Entities/units in the SEZ and EoUs, Premier and Star Trading Houses are permitted to import gold for the purpose of exports only. Banks should ensure that foreign exchange transactions effected with their constituents should be compliant with the instructions. These import restrictions will be monitored by customs authorities/ DGFT. This circular from RBI comes into force with immediate effect.