Introduction: The Reserve Bank of India (RBI) has issued a crucial circular, RBI/2023-2024/83, dated November 10, 2023, addressing guidelines for the import of silver by Qualified Jewellers as notified by the International Financial Services Centres Authority (IFSCA).
1. Circular Context: This circular refers to A.P. (DIR Series) Circular No.04 dated May 25, 2022, permitting AD Category-I banks to remit advance payments for the import of gold on behalf of Qualified Jewellers through India International Bullion Exchange IFSC Ltd (IIBX).
2. Expansion to Silver Import: The circular highlights Notification No.35/2023 dated October 11, 2023, issued by DGFT, which expands the import scope to silver. Qualified Jewellers, as recognized by IFSCA, are now permitted to import silver under specific ITC(HS) Codes through IIBX.
3. Remittance Guidelines: AD Category-I banks are authorized to allow Qualified Jewellers to remit advance payments for eleven days for the import of silver through IIBX. This aligns with the conditions outlined in the previous circular dated May 25, 2022.
4. Communication to Constituents: AD Category-I banks are instructed to communicate the contents of this circular to their constituents and concerned customers.
Conclusion: RBI’s circular (RBI/2023-2024/83) serves as a significant update, extending the import guidelines to include silver for Qualified Jewellers as recognized by IFSCA. AD Category-I banks play a pivotal role in facilitating the remittance of advance payments, contributing to the efficient import process. Stakeholders are urged to adhere to the specified conditions, and the circular operates under the ambit of FEMA, 1999, without prejudice to other applicable laws.
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Reserve Bank of India
RBI/2023-2024/83
A.P. (DIR Series) Circular No. 07 Dated: November 10, 2023
To,
All Category-I Authorised Dealer Banks
Madam/Sir
Guidelines on import of silver by Qualified Jewellers as notified by –
The International Financial Services Centres Authority (IFSCA)
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to A.P. (DIR Series) Circular No.04 dated May 25, 2022, in terms of which AD Category-I banks have been permitted to remit advance payments on behalf of Qualified Jewellers as notified by International Financial Services Centres Authority (IFSCA) for eleven days for import of gold through India International Bullion Exchange IFSC Ltd (IIBX).
2. Further, attention of AD Category-I banks is invited to Notification No.35/2023 dated October 11, 2023 issued by DGFT, in terms of which, in addition to nominated agencies as notified by RBI (in case of banks) and DGFT (for other agencies), Qualified Jewellers as notified by International Financial Services Centres Authority (IFSCA) have been permitted to import silver under specific ITC(HS) Codes through IIBX.
3. Accordingly, it has been decided that AD Category-I banks may allow Qualified Jewellers to remit advance payment for eleven days for import of silver through IIBX subject to the conditions as mentioned in A.P. (DIR Series) Circular No.04 dated May 25, 2022.
4. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
5. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.
Yours faithfully,
(Puneet Pancholy)
Chief General Manager
