RBI norms for import of Gold

The Reserve Bank of India (RBI) introduced norms for facilitating the physical import of gold through India International Bullion Exchange (IIBX) or any authorized exchange by Qualified Jewellers in India. The exchange should be authorized by the International Financial Services Centers Authority (IFSCA) or the Directorate General of Foreign Trade (DGFT).

What is India International Bullion Exchange (IIBX)??

In the Union Budget 2020, Union Finance Minister announced the setting up of the India International Bullion Exchange (IIBX). IIBX was set up at International Financial Services Center (IFSC) at GIFT City in Gandhinagar, Gujarat. India International Bullion Holding IFSC Limited (IIBH) has been created for setting up and operationalizing IIBX in IFSC, GIFT City. India’s bullion market is one of the largest in the world. A bullion spot exchange is needed to eliminate the market inefficiencies.

How much gold is imported by India and what is the impact on the trade deficit?

Due to higher demand, India’s gold imports rose by 33.34% to USD 46.14 billion during the financial year 2021-22. In 2020-21, USD 34.62 billion worth of gold was imported. The surge in gold imports during 2021-22 resulted in the widening of the trade deficit to USD 192.41 billion. The trade deficit in 2020-21 was USD 102.62 billion. India is the world’s second-largest consumer of gold after China.

Month: Current Affairs - May, 2022

Category: Economy & Banking Current Affairs