India allows RBI to import gold without paying import levies

The government announced that the Centre has granted permission to its central bank to import gold without having to pay import duties, as stated in a notification issued late on Tuesday.

Gold importers in the world’s second largest gold consumer are required to pay basic customs duty and Agriculture Infrastructure and Development Cess (AIDC).

As of September 2023, the Reserve Bank of India held a total of 800.79 metric tonnes of gold, which includes gold deposits of 39.89 tonnes.

According to the RBI’s most recent reserve management report, 388.06 tonnes of gold are held overseas while 372.84 tonnes are held domestically. Gold prices stabilized on Wednesday following a significant drop in the previous session, triggered by a U.S. inflation report that raised bond yields and slightly dampened expectations for a June interest rate cut by the Federal Reserve.

Spot gold increased by 0.1% to $2,158.26 per ounce. On Tuesday, bullion experienced a 1.1% decline, marking its largest single-day drop since Feb. 13, when consumer prices exceeded expectations in January.