Thursday, 19th February 2004 (3932 views)

The reserve Bank of India has today confirmed it may impose mandatory rules governing gold imports.

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.

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.

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.

A “know your customer” rule is also being touted, with banks needing to check the credentials of importers.

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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