India calls high-level meeting to break gold import impasse
MUMBAI/NEW DELHI (REUTERS) - India has called a meeting of top officials from the finance and trade ministries in New Delhi on Friday to break a two-month impasse on gold imports that has crimped supply and pushed up prices in the world's biggest gold consumer.
Gold imports into India have virtually come to a halt since July 22 when the Reserve Bank of India introduced the so-called 80/20 rule that says 20 per cent of all imports had to be re-exported.
A lack of operational guidance on how the rules work continues to deter importing agencies from bringing in supplies because they fear their shipments could get stuck at airports.
The rules say imports will now have to be brought into a customs-bonded warehouse before being sent to the buyers.