Government Authorizes 15 Major Banks for Gold and Silver Imports Until 2029
Synopsis
In a significant move for the bullion market, the Union Government has authorized 15 major banks, including industry giants like HDFC and ICICI, to import gold and silver until March 2029. This decision aims to enhance transparency and curb irregularities in the trade.
Key Takeaways
15 major banks authorized for gold and silver imports until 2029 .
Focus on enhancing transparency in bullion trade.
Significant decline in gold imports noted in March 2026 .
Indian gold ETFs saw continued inflows despite market fluctuations.
Digital gold purchases via UPI remain strong.
New Delhi, April 17 (NationPress) On Friday, the Union Government granted permission to 15 prominent banks, including State Bank of India, HDFC Bank, and ICICI Bank, to import both gold and silver from April 1, 2026, until March 31, 2029.
During this timeframe, Union Bank of India and Sberbank are solely permitted to import gold.
This notification has been issued by the Directorate General of Foreign Trade (DGFT).
This initiative is part of the government's strategy to simplify bullion imports and ensure they are conducted through regulated and traceable channels. By limiting imports to authorized banks, the authorities aim to enhance transparency, effectively monitor inflows, and address irregularities in the gold and silver trading sectors.
The banks authorized by the RBI for importing both gold and silver include Axis Bank Ltd, Bank of India, Deutsche Bank, Federal Bank Ltd, HDFC Bank Ltd, Industrial and Commercial Bank of China Ltd, ICICI Bank Ltd, IndusInd Bank Ltd, Indian Overseas Bank, Kotak Mahindra Bank Ltd, Karur Vysya Bank Ltd, Punjab National Bank, RBL Bank Ltd, State Bank of India, and Yes Bank Ltd.
India's gold imports significantly decreased in March 2026, falling to a 9-month low of $3.1 billion. In volume, imports are estimated to be between 20–25 tonnes, which is well below the 12-month average of 62 tonnes. This decline is attributed to a combination of weakened demand and supply disruptions due to flight interruptions from the Middle East, a crucial transit hub for gold and silver imports into India, as stated by the World Gold Council.
In April, gold prices saw a partial recovery following the steep decline in March. Meanwhile, import restrictions and supply chain issues have reduced domestic discounts. Listed jewellers reported robust year-on-year growth in Q1 2026, fueled by weddings, discretionary spending, larger purchase sizes, and ongoing expansion efforts, according to the statement.
Contrasting with significant redemptions and the trends observed in North American and European ETFs, Indian gold ETFs managed to maintain their inflow streak for the 11th consecutive month in March 2026, recording a net inflow of Rs 22.7 billion (US$244 million), according to data from the Association of Mutual Funds of India (AMFI). The sustained interest from investors in gold ETFs continues to expand, albeit at a slower pace, as evidenced by the increasing number of accounts or folios in gold ETFs.
Purchases of digital gold via the Unified Payments Interface (UPI) remained robust in February, although they fell short of the record levels seen in January. Total purchases for the month reached INR 30.3 billion, equivalent to an estimated 1.9 tonnes in volume, the statement added.
Point of View
This decision reflects a strategic effort by the Union Government to regulate the gold and silver import market. By involving major banks, the government aims to enhance transparency and curb irregularities, ultimately fostering a more stable trading environment.
NationPress
7 Jul 2026
Frequently Asked Questions
What is the timeframe for the gold and silver imports authorized by the government?
The imports are authorized from April 1, 2026, to March 31, 2029.
Which banks have been authorized to import gold and silver?
15 major banks, including HDFC Bank, ICICI Bank, and State Bank of India, have been authorized.
Why is the government restricting imports to authorized banks?
The government aims to improve transparency, monitor inflows effectively, and curb irregularities in the gold and silver trade.
How have gold imports trended recently?
India's gold imports fell to a 9-month low of $3.1 billion in March 2026, reflecting reduced demand and supply disruptions.
What impact has this had on gold prices?
Gold prices partially recovered in April following a decline in March, while domestic discounts narrowed due to import curbs.
