Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

BANKS
The Reserve Bank of India (RBI) - on 30 August 1997 - authorised the first banks to import gold bullion
for the domestic market. The first imports occurred in November.
Although the RBI has authorised 20 banks, this section focuses on the 6 Indian and 4 foreign banks that were active
importers in 2001.
Banks may not export gold, or hedge its value. All rely on consignment stocks from international dealers. They sell the
bulk of imported bars to less than 50 large secondary tier bullion dealers.
Banks can sell gold on an “unfixed” basis for up to 5 calendar days. The minimum quantity is normally 50 – 100 TT’s.
None offers a buy-back service. There are now 111 Gold Cell branches servicing customers in 34 cities in 16 States.
Branches in cities, when State sales taxes are low, tend to attract the bulk of imported gold.
AUTHORISED BANKS
The Reserve Bank of India (RBI) has authorised 20 banks in 3 bank categories to import gold under the OGL
scheme: 12 Public Sector Banks, 3 Private Sector Banks and 5 Foreign Banks.
Public Sector Banks Authorisation date Date of first import
Allahabad Bank * 1997 August 1998 January
Bank of India * 1997 August 1997 November
Canara Bank 1997 August n.a.
Indian Overseas Bank * 1997 August 1997 November
State Bank of India * 1997 November 1997 November
Corporation Bank * 1997 November 1998 January
Oriental Bank of Commerce 1998 March n.a.
Bank of Baroda 1998 April n.a.
Syndicate Bank 1998 December n.a.
Dena Bank 1999 January n.a
Punjab National Bank * 2000 January 2000 September
Union Bank of India 2002 May (approx) n.a.
Private Sector Banks Authorisation date Date of first import
Global Trust Bank 2001 January n.a.
ICICI Bank 2002 May (approx) n.a.
HDFC Bank 2002 May (approx) n.a.
Foreign Banks Authorisation date Date of first import
ABN-AMRO Bank * 1997 August 1997 November
Bank of Nova Scotia * 1997 August 1997 December
Standard Chartered Bank * 1997 August
2000 January (reissued) 1997 December
2000 June
Commerzbank 2000 January n.a.
HSBC * 2000 July 2000 October
Sources: Reserve Bank of India and banks. * These banks were reported as active importers in 2001.
The Indian Government has a shareholding in 11 of the 12 Public Sector Banks. The RBI is a major shareholder of the State
Bank of India.
The RBI authorised 3 of the listed banks around May 2002: Union Bank of India, ICICI Bank Ltd and The HDFC Bank Ltd.
This section does not cover them as they are in the process of becoming active.
ELIGIBILITY
The RBI authorises only scheduled commercial banks.
The bank should have a minimum capital base of Rs 300 crore (US$ 650 million) for its business in India. The ratio of total
capital to risk-weighted assets should be 9% or more. It should have an advanced risk management system in place, as
well as an excellent business reputation and history. In the absence of previous gold-related business experience, it should
provide evidence of its ability and intention to forge links with international banks to develop in-house gold market
capabilities.
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AN INTRODUCTION TO THE INDIAN GOLD MARKET