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The Reserve Bank of India has authorised seven banks to act as agencies for import of gold/silver/platinum, namely the Allahabad Bank, Bank of India, Canara Bank, Indian Overseas Bank, Bank of Nova Scotia, ABN-Amro Bank, and Standard Chartered Bank.

These authorised banks are in addition to the existing agencies authorised to import gold/silver/platinum, namely MMTC Ltd, Handicraft and Handloom Export Corporation, State Trading Corporation of India and the State Bank of India, an RBI release said.

Under the scheme announced by the export import policy (1997-2000) of the government, the imported gold/silver/platinum could be utilised for supply to manufacturer-exporters of jewellery through outright sale or lending of the metal. Banks would also be able to sell gold/silver to the holders of special import licence as well as to returning non-resident Indians.

As per notification issued by the government of India, ministry of finance (department of revenue), the vaults of banks authorised by RBI will be regarded as bonded warehouses.

The notification also confines the responsibility of the RBI authorised banks to safe custody of the precious metals, informing the customs authorities in case of default and recovering the precious metal or its value in case the value of gold is not paid for.

It may be recalled that RBI had announced in July 1997 the eligibility criteria for banks to be authorised as nominated agency for import of gold/silver/platinum. RBI had received eight applications in response to this announcement. The authorisation in favour of the seven banks was decided on the basis of compliance of parameters laid down by RBI while inviting applications from banks, one of the important stipulations being requirement of unimpaired capital of Rs 3 billion, the RBI release said.