**Summary:**
RBI Circular No. 07, dated November 10, 2023, issued by the Reserve Bank of India (RBI), amends existing guidelines concerning the import of silver by Qualified Jewellers as notified by the International Financial Services Centres Authority (IFSCA). This circular, addressed to all Category-I Authorised Dealer (AD Category-I) banks, permits these banks to allow Qualified Jewellers to remit advance payments for up to eleven days for silver imports through the India International Bullion Exchange IFSC Ltd (IIBX). This provision aligns with Notification No. 35/2023 issued by the Directorate General of Foreign Trade (DGFT) on October 11, 2023, which allows Qualified Jewellers to import silver under specific ITCHS Codes through IIBX, in addition to nominated agencies. The conditions outlined in A.P. DIR Series Circular No. 04 dated May 25, 2022, remain applicable to these transactions. This directive is issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999. AD Category-I banks are instructed to inform their constituents and customers of these changes. Contact for further information: Puneet Pancholy, Chief General Manager.
Key Entities Referenced
Reserve Bank of India: The central bank of India, referred to as RBI.
International Financial Services Centres Authority: IFSCA, an authority that notifies Qualified Jewellers.
Authorised Dealer Category I Banks: AD Category I banks, financial institutions authorized to deal in foreign exchange.
Qualified Jewellers: Jewellers who meet certain criteria and are authorized to import gold and silver through IIBX.
India International Bullion Exchange IFSC Ltd: IIBX, a platform for trading bullion.
Directorate General of Foreign Trade: DGFT, an agency that also notifies Qualified Jewellers and issues notifications related to import/export.
Foreign Exchange Management Act, 1999: FEMA, the Act under which the circular's directions are issued.
Puneet Pancholy: Chief General Manager at Reserve Bank of India
RBI/2023-2024/83
A.P. (DIR Series) Circular No. 07 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.
14. 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
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