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* 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 precious metals mentioned above.
* The Import and sale of gold will be carried under the separate scheme by name 'Union Gold'
· Import of Gold on Consignment Basis:
Gold may be imported by the nominated agencies as mentioned above where the ownership of the gold will remain with the supplier of the Gold and the importer (Bank) will be acting as an agent. Remittance towards the cost of import of gold shall be made as and when the Bank sells the gold as per the agreed terms and conditions with the supplier. The Import of Gold through this mode is more.
· Import of Gold on unfixed prices:
The Bank may import gold on outright purchase basis subject to the condition that although ownership of the gold shall be passed on to the Bank at the time of imports itself. The price of the gold shall be fixed later as and when the Bank sells the gold to users.
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.
In any case, the price has to be fixed by the Bank and the payments are to be settled within a period of five days.
* 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.
UNION BULLION
* In terms of Gold import guidelines of FEMA, Authorized Dealers are permitted to extend loan under the agreed terms with the supplier of the gold.
* In tune with this, our Bank has also come out with its own scheme for financing the working capital requirements of importers given below:
Import of gold for the purpose of export:
- The export has to be completed within a maximum period of 90 days from the date of release of gold on loan basis.
- The price of gold to be fixed within 180 days from the date of shipment.
Domestic Jewellery Manufacturers:
- The price of gold has to be fixed within 90 days from the date of release of gold on loan basis.
GOLD FORWARD
* The importers can hedge their Gold exposures by booking forward contracts with the Bank, which will take care of their price risk.
* This forward contract can be booked for a maximum period of 180 days in terms of RBI guidelines.
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