RBI tightens banks' reporting norms to monitor gold import

The Reserve Bank on Tuesday tightened the reporting requirements under which banks will have to submit a monthly statement informing the central bank about the quantity of gold imported and mode of payment adopted.

"It has been decided to further rationalise the entire reporting system on import of gold," a RBI notification said.

The directive comes amid concerns of huge outflow of foreign exchange on import of gold which is putting pressure on the India's current account deficit (CAD).

According to the new RBI directive, banks have been asked to file a half yearly statement on quantity and value of gold imported by nominated banks, agencies, export-oriented units (EOUs) and special economic zone (SEZs) in gem & jewellery sector, as well as mode of payment.

The statement, to be filed with the foreign exchange department of the RBI, has to be submitted at the end of March and September.

The central bank has also asked them to file monthly statement on the quantity and value of gold imports by the nominated agencies (other than the nominated banks), EOUs, SEZs as well as the cumulative position at the end of the reporting month.

Earlier, banks were required to submit a monthly statement on the number of transactions and value of gold imported by EOUs, units in SEZ\export processing zone and nominated agencies/banks.

India's gold import bill was USD 46 billion in April- November 2011, next only to USD 71-72 billion of crude oil.

To discourage gold imports, the government has recently doubled the customs duty on it to four percent.

As per the World Gold Council, the total gold imported in India in 2011 was 969 tonnes. India is the world's largest importer and consumer of the precious metal.

Jewellers and traders are on strike since March 17 to protest the hike in import duty and imposition of one percent excise duty on unbranded jewellery. 

PTI