Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

ROLE OF INDIAN GOVERNMENT
The Department of Economic Affairs formulates and monitors many of the country’s economic policies and programmes
at the macro level. The Banking Division, concerned with the functioning of the Indian banking system, has an interest in
the gold-related activities of banks.
The India Government Mint, Mumbai falls under the administrative control of the Ministry of Finance. The Mint refines
gold and fabricates gold bars and medallions.
RESERVE BANK OF INDIA
The Reserve Bank of India (RBI), established as a private institution in 1935 under the RBI Act of 1934, was nationalised in
1949 under the Banking Regulation Act 1949. It acts as India’s monetary authority, regulator and supervisor of the
financial system, manager of exchange control and the issuer of currency. It has 22 regional offices, most in State capitals.
Three Departments have a specific interest in gold.
Department of External Investments and Operations. Monitors official gold reserves, and co-ordinates the twiceyearly
meetings of the Standing Committee on Gold.
Exchange Control Department. Involved in all matters relating to foreign exchange.
Department of Banking Operations and Development (DBOD). Authorises and monitors those banks (Public Sector,
Private Sector and Foreign Banks) that import gold bullion and participate in the Gold Deposit Scheme.
Public Sector Banks - the Government has a major shareholding - that are active in gold include Allahabad Bank, Bank of
India, Corporation Bank, Indian Overseas Bank, Punjab National Bank and State Bank of India.
The Standing Committee on Gold and Precious Metals in the RBI advises the RBI and the Government on national
gold policy. The committee, established in 1992, includes representatives of the Ministry of Finance and the Ministry of
Commerce and Industry.
Historically, the RBI was directly responsible for licensing and regulating all official gold imports. Since 1992, however, when
the Foreign Exchange Regulation Act 1973 was amended, gold import and export policies now fall under the purview of the
national EXIM (Export/Import) Policy.
MINISTRY OF COMMERCE AND INDUSTRY
The Ministry of Commerce and Industry comprises the Department of Commerce, Department of Supply and Department of
Industrial Policy and Promotion.
The Department of Commerce, which includes the Directorate General of Foreign Trade, is responsible for policy and
regulations relating to the import and export of gold under the overall EXIM (Export/Import) Policy. It controls the Special
Economic Zones (SEZ) and Export Processing Zones (EPZ) where much gold jewellery for export is fabricated. It also
supervises the Gem & Jewellery Export Promotion Council (GJEPC).
Public Sector Undertakings (PSU’s), autonomous bodies that engage in gold-related activities and fall under the
administrative control of the Department of Commerce, are MMTC Limited, The State Trading Corporation of India Ltd (STC)
and PEC Limited. The Handlooms and Handicrafts Exports Corporation of India Ltd (HHEC) is another PSU active in gold,
but falls under the Ministry of Textiles.
The Ministry’s Directorate of Commercial Intelligence and Statistics in Kolkata co-ordinates the collection of import
statistics, including gold.
MINISTRY OF CONSUMER AFFAIRS, FOOD AND DISTRIBUTION
The Bureau of Indian Standards (BIS) falls under the administrative control of the Department of Consumer Affairs. It
launched the BIS Certification Scheme for Hallmarking of Gold Jewellery in April 2000. It authorises independent
entities to act as Assaying and Hallmarking Centres, and jewellers to use these centres as Certified Jewellers.
MINISTRY OF COAL AND MINES
The Indian Bureau of Mines (IBM) falls under the administrative control of the Department of Mines. The liberalised
National Mineral Policy, initiated in 1993, encourages exploration and the mining of gold by private enterprises.
AN INTRODUCTION TO THE INDIAN GOLD MARKET 27