17 banks get govt nod to import bullion, Pg17

Key Highlights:

• The government authorized 17 banks to import bullion for three years, effective April 1, 2026, ending uncertainty due to delays in issuing the authorization list.
• 15 banks are authorized to import both gold and silver, while Union Bank of India and Sberbank are authorized to import only gold.
• The list includes public sector, private, and foreign banks, such as State Bank of India, HDFC Bank, and Industrial and Commercial Bank of China.
• India's gold imports in 2025-26 amounted to $72 billion, a 24% increase from 2024-25, while silver imports reached $12 billion, more than double the previous year's $4.8 billion.

Detailed Insights:

• The delay in issuing the list of authorized banks had effectively halted gold imports into the country, causing more than 5 tonnes of gold and around 8 tonnes of silver to be stuck without customs clearance.
• The Directorate General of Foreign Trade (DGFT) issued the order, authorizing banks to import gold and silver until March 31, 2029, a longer duration than the previous list which was valid for only one year.
• The current list expands the number of authorized banks, with Deutsche Bank and Indian Overseas Bank now permitted to import both gold and silver, and Sberbank newly added for importing only gold.
• A surge in prices of gold and silver led to increased buying through routes such as Exchange Traded Funds (ETFs) in the second half of 2025-26.
• The DGFT changed the classification of gold, silver, and platinum products to ‘restricted’ from ‘free’ on April 2, requiring importers outside Special Economic Zones and Export Oriented Units to obtain a license.

Key Concepts Involved:

• Bullion: Refers to physical gold and silver of high purity, often in the form of bars, ingots, or coins.
• DGFT (Directorate General of Foreign Trade): A government agency responsible for implementing and regulating India's foreign trade policy.
• Exchange Traded Funds (ETFs): Investment funds traded on stock exchanges, holding assets like gold or silver, allowing investors to gain exposure to these commodities.