DGFT Authorizes 17 Banks to Import Gold & Silver Until March 2029

Current Context: On April 1, 2026, the DGFT authorized 17 banks to import gold and silver bullion into India, valid until March 31, 2029.

• This long-term mandate replaces annual renewals, clears customs delays, and reinforces stability in the bullion trade.

• Validity: April 2026 – March 2029 (multi-year, not annual).
• Authorized Banks:
• Gold & Silver (15 banks): SBI, PNB, Bank of India, Indian Overseas Bank, HDFC, ICICI, Axis, Kotak, IndusInd, Federal, Yes, RBL, Karur Vysya, Deutsche Bank, ICBC.
• Gold only (2 banks): Union Bank of India, Sberbank (Russia).
• Reason: Cleared customs logjam (5 tonnes gold, 8 tonnes silver stuck).
• Operational Certainty: Jewelers & dealers get stability, no yearly bottlenecks.
• Supply Stabilization: Prevents spikes in domestic premiums, resumes steady inflows.
• Macroeconomic Impact: Gold imports hit $72 billion in FY 2025-26 (+24% YoY); tighter monitoring helps manage CAD.
• Trend Shift: Rising inflows into Gold & Silver ETFs—in early 2026, gold ETF inflows surpassed equity mutual funds for the first time.

Question:

Q.1 Which of the following banks is authorized by the Directorate General of Foreign Trade to import gold only?
a) State Bank of India
b) Union Bank of India
c) HDFC Bank
d) Axis Bank

Answer: b) Union Bank of India and Sberbank (Russia) are permitted to import only gold.