India has authorised a set of major banks to import gold and silver for a three-year period ending March 2029, a move aimed at restoring supply chains and stabilising the bullion market after delays in approvals had disrupted imports and led to shortages in the domestic market.
The decision, issued through the Directorate General of Foreign Trade, provides regulatory clarity and allows banks to resume imports, addressing concerns of stalled consignments and ensuring smoother availability of precious metals in one of the world’s largest bullion-consuming economies.
Authorised Banks and Import Framework Until 2029
The government has permitted around 15 major banks, including State Bank of India, HDFC Bank, Punjab National Bank, ICICI Bank, Axis Bank, and Bank of India, to import both gold and silver from April 1, 2026, to March 31, 2029, under a regulated framework.
Other banks included in the list are Kotak Mahindra Bank, IndusInd Bank, Yes Bank, Federal Bank, Indian Overseas Bank, RBL Bank, Deutsche Bank, and Industrial and Commercial Bank of China, reflecting a mix of public, private, and foreign lenders participating in bullion imports.
In addition, Union Bank of India and Sberbank have been authorised to import only gold, indicating a differentiated licensing structure based on regulatory approvals and operational roles.
This authorisation replaces the previous list and ensures continuity in bullion trade operations, with banks acting as key intermediaries for importing gold and silver into the country.
Delay in Notification and Impact on Bullion Market
The announcement comes after a delay in issuing the annual authorisation list, which had temporarily halted imports and led to significant quantities of gold and silver being stuck at customs clearance points, creating supply bottlenecks in the domestic market.
Reports indicated that more than five metric tonnes of gold and around eight metric tonnes of silver were awaiting clearance due to the absence of formal approval, highlighting the critical role of regulatory notifications in maintaining uninterrupted supply chains.
During the delay, banks reportedly paused new import orders, which raised concerns of potential shortages, especially ahead of key festive buying periods, and also had implications for domestic prices and premiums in the bullion market.
With the updated notification now in place, banks can clear pending consignments and resume normal import operations, easing immediate supply pressures.
Regulatory Strategy and Economic Implications
The government’s decision to route gold and silver imports through authorised banks is part of a broader strategy to maintain tighter control over bullion inflows, improve transparency, and monitor the impact on the country’s trade balance and currency stability.
India remains one of the largest consumers of gold globally and the biggest importer of silver, making bullion imports a significant factor in the current account deficit and overall economic management, particularly during periods of volatile global commodity prices.
By limiting imports to designated financial institutions, authorities aim to ensure traceability and reduce the risk of irregularities or unofficial trade channels, while also aligning import volumes with macroeconomic priorities.
The move is also expected to benefit jewellers, refiners, and institutional buyers who depend on bank-led imports, providing operational certainty and supporting the broader ecosystem of the precious metals industry.
Market Outlook and Industry Response
Market participants view the notification as a stabilising step that restores clarity and confidence in the bullion trade, especially after a brief period of uncertainty caused by the delay in approvals, which had disrupted normal operations.
The resumption of imports is expected to normalise supply levels and reduce price volatility in the domestic market, while also supporting demand during key buying seasons, when gold and silver consumption typically rises.
At the same time, the government’s continued oversight indicates that bullion imports will remain closely regulated, balancing consumer demand with economic considerations such as trade deficit management and currency stability.
The three-year validity of the authorisation provides a longer-term framework for planning and operations, enabling banks and industry stakeholders to align their strategies with a stable regulatory environment.
