RBI to Import Gold Duty-Free

  • 13 Mar 2024

On 12th March, India permitted its central bank to import gold without import levies, aiming to bolster its reserves.

  • Move aims to streamline gold imports and support India's position as the world's second biggest gold consumer.
  • Import Duties for Gold: Gold importers in India typically pay basic customs duty and Agriculture Infrastructure and Development Cess (AIDC).
  • New notification exempts Reserve Bank of India from paying import levies on gold imports.
  • Reserve Bank of India's Gold Holdings: As of September 2023, Reserve Bank of India (RBI) holds 800.79 metric tonnes of gold.
  • RBI's gold reserves include 39.89 tonnes of gold deposits.
  • Out of the total, 388.06 tonnes are held overseas, and 372.84 tonnes are held domestically.
  • Objective of Gold Imports: Gold reserves serve as a buffer against economic uncertainties and fluctuations in currency values.