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Thursday, 19th February 2004 (5288 views)

The reserve Bank of India has today confirmed it may impose mandatory rules governing gold imports.<BR/><BR/>The bank says it is considering making it a requirement that payments meant for gold are channelled through branches in a bid to better regulate the quality of imports.<BR/><BR/>Under the proposals banks would have to employ risk management procedures to ensure that they can legislate for the risk involved in the proprietary purchase of gold on its own. <BR/><BR/>Sources told the Business Standard that the guidelines would cover the purview of gold imported under various heads such as buyer's credit, consignment or outright purchase. <BR/><BR/>A “know your customer” rule is also being touted, with banks needing to check the credentials of importers.<BR/><BR/>Analysts say that changes to the rules could make it easier to keep a track of the levels of gold being imported and also to facilitate improved indirect supervision.

 

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