Import of Gold on Loan Basis – Tenor of Loan and Opening of Stand-By Letter of Credit

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....o. 34 February 18, 2005 To, All Scheduled Commercial Banks which are Authorised Dealers in Foreign Exchange Madam/Sirs, Import of Gold on Loan Basis - Tenor of Loan and Opening of Stand-By Letter of Credit Attention of Scheduled Commercial Banks, which are authorized dealers in foreign exchange, is invited to our A.D. (G.P. Series) Circular No.7 dated March 6, 1998 and A.P. (DIR ....

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....& Industry, Government of India, enhanced the period for fixing the price and repayment of the Gold Loan to 180 days from the date of export. As a result the maximum period of gold loan becomes 240 days (i.e. 60 days for manufacture and exports + 180 days for fixing the price and repayment). 3. Banks may note to comply with the following guidelines.: (i) Nominated agencies / approved banks c....

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....04-09 dated December 1, 2004. (iii) ADs may open Standby Letters of Credit (SBLC), for import of gold on loan basis, where ever required, as per FEDAI guidelines dated April 1, 2003. The tenor of the SBLC should be in line with the tenor of the gold loan. It may be noted that the SBLC can be opened only on behalf of entities permitted to import gold on loan basis, viz. nominated agencies and 10....