Page 40 - Bullion World Volume 03 Issue 07 July 2022

Bullion World | Volume 5 | Issue 09 | September 2025

under the UCPEA, only platinum with a purity of retail participants. However, eligibility norms for
99% or higher now qualifies for preferential duty, Qualified Suppliers and Qualified Jewellers remain
closing earlier gaps where platinum alloys were intact. IIBX formally communicated this change via a
incorrectly classified as gold. circular issued on May 2, 2025.

RBI Circulars & Policy Changes on Retail Gold 2. Extended Trading Hours (April–May 2025)
Loans – Summary IFSCA approved an additional 3 hours of trading for
In response to rising concerns around gold loan spot contracts on IIBX, now extending operations
practices, the RBI issued key policy changes between from 9:00 AM to 9:30 PM IST. This enhances market
late 2024 and mid-2025. liquidity, enables same-day settlement of Bullion
Depository Receipts (BDRs), and aligns trading hours
A September 2024 circular flagged irregularities more closely with global bullion markets.
like third-party sourcing, weak collateral handling,
evergreening, and auction mismanagement. In April 3. HS Code Harmonisation and ITC(HS)
2025, RBI proposed draft guidelines to standardize Updates (June 2, 2025)
gold loan practices across banks and NBFCs, including On June 2, IFSCA issued a circular to align its
tighter LTV limits, restrictions on collateral (e.g., no guidelines with DGFT’s recent HS code revisions:
gold ETFs or primary bullion), and stricter appraisal • Deleted legacy ITC(HS) codes and updated import
norms. classifications for gold and silver.
• Qualified Jewellers can now import gold under
On June 6, 2025, RBI released final norms titled 71081210 and silver grains under 71069120, plus
“Lending Against Gold and Silver Collateral Directions, silver bars under 71069221 (subject to RBI norms).
2025”, effective April 1, 2026. Key changes include: • Indian banks authorised by RBI can likewise import
gold (≥ 99.5%) and silver (≥ 99.9% grains/bars)
• Tiered LTV caps (85% for loans ≤₹2.5 lakh; 75% using these updated codes
for loans >₹5 lakh)
• Only jewellery, ornaments, and coins allowed as India–United Kingdom Comprehensive Economic
collateral and Trade Agreement (CETA)
• Stronger auction rules, borrower disclosures, and
vault security • Signed: 24 July 2025
• Small-ticket loans (≤₹2.5 lakh) exempted from • Benefits for Gold & Jewellery:
credit assessments
{ Zero-duty access for nearly 99% of Indian
The move aims to balance borrower protection, access jewellery exports to the UK, eliminating
for rural borrowers, and systemic risk mitigation, amid previous tariffs of up to 4%
surging gold loan demand. { Projected surge in exports: from a current
US$941 million to US$2.5 billion, with total
4. Gold Monetisation Scheme (GMS) & Sovereign sector trade possibly reaching US$7 billion in
Gold Bonds (SGBs) 2 years
• March 26, 2025: The government discontinued the { Expanded export opportunities, especially
medium-term and long-term deposit components for gold jewellery, gemstones, and bridal
of the Gold Monetisation Scheme (GMS) designs—enhancing competitiveness and
MSME participation
IFSCA policy changes and IIBX (India International { Support for design services: visa facilitation for
Bullion Exchange) regulations Indian jewellery professionals, CAD designers,
gemstone graders, and social security
1. Net-Worth Requirement Removed exemptions bolster service sector integration
(April 29–May 2, 2025)
In late April 2025, IFSCA amended its operating
guidelines to eliminate the net-worth requirement
for all categories of ‘customers’ trading on IIBX,
broadening access and encouraging inclusivity for

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