As per RBI guidelines, the precious metals Gold, Silver and Platinum can be imported by the nominated agencies such as Minerals & Metals Trading Corporation and Banks on consignment basis or on fixed price basis.
* Our Bank has been one of the Banks nominated for import of gold and silver.
* The Import and sale of gold will be carried under the separate scheme by name 'Union Gold'
Import of Gold on Consignment Basis:
The gold is either imported on consignment basis or back to back basis.
Taking into account the requirements and request of the regular customers, the Bullion Dealing branch will approach for import of gold/silver on consignment basis from the approved suppliers through our Treasury Branch. The ownership of the gold imported on consignment basis will remain with the Overseas supplier, till such time final sale is made to the customer and price fixing is done. Usually customer may fix the price at any time favourable to them. The customers will approach the Bank for their requirements specifying the quantity they desire to purchase. Banks will thereafter contact the supplier and fix the price for the quantity desired to be purchased by the customers. The gold will be delivered to the customer on payment of equivalent amount in Indian Rupees at the ongoing rate or agreed rate.
Back to back basis:
Under Back to back facility, customer will place an order with the Bank specifying the quantity he intends to buy e.g. 100 kgs of gold and will indicate the range of price he is looking for. Bank will thereafter place an order with the approved supplier. On agreeing to the terms like the price, delivery date etc. the deal will be concluded and the customer will be informed accordingly. The gold so imported will then be delivered to the customer against full payment in equivalent Indian Rupees at the ongoing rate/agreed rate. Delivery of gold may be affected on value date at the Airport itself or at the vault of the Branch in case gold is cleared and stored in the Branch vault after recovery of Rupee funds.
Sale of Gold on unfixed prices:
The Bank may sell gold on UNFIXED PRICE basis on outright to the customers from our consignment stocks subject to the condition that the price is fixed within 11 calendar days from the date of delivery of gold.
As per RBI guidelines, Bank has to collect 100% margin in cash for the provisional value of gold and suitable additional margin (normally 10%) to take care of price fluctuation.
Sale of gold on fixed price basis:
The customers will approach the Bank for their requirements specifying the quantity they desire to purchase. Banks will thereafter contact the supplier and fix the price for the quantity desired to be purchased by the customers. The gold will be delivered to the customer on payment of equivalent amount in Indian Rupees at the ongoing rate or agreed rate.
* Bank had captive clients who were dealing in bullion with other nominated agencies since decades. By introducing this product, these clients have diverted their business through our Bank.
* In the process, we have nominated the following Branches to deal in gold;
(i) Zaveri Bazaar Branch, Mumbai.
(ii) M.SMarg Branch, Mumbai.
(iii) Overseas Branch, Kolkotta.
(iv) Ellis Bridge, Ahmadabad.
(v) IFB Branch, Bangalore.
(vi) Coimbatore Main Branch.
(vii) Overseas Branch at SEEPZ ++, Mumbai.
(viii) Ramkote Branch, Hydrabad.
(ix) Chennai Main, Chennai
(x) Overseas Branch, Ernakulam
(xi) Karol Bagh.