Centre updates list of banks authorised to import gold, silver under Foreign Trade Policy

The Government of India has made a change to the list of banks that are allowed to bring gold and silver into the country under the Foreign Trade Policy. This is an important move because India is one of the biggest users of gold in the world and it also imports a lot of silver. The decision will affect how much gold and silver are available how banks work, the balance of trade and even the prices of gold in shops.

Below is an explanation of what is going on.

1. Background: Why the government controls gold and silver imports

India buys a lot of gold and silver every year.

Gold is used to make jewellery as an investment and for reasons.

Silver is used in industries like electronics and solar panels and to make ornaments.

However India does not produce gold and silver itself.

If India imports much gold and silver it can cause problems.

It can increase the trade deficit, which means India is buying more from countries than it is selling to them.

It can also put pressure on the rupee, which is the currency used in India.

It can affect the foreign exchange reserves, which are like a big piggy bank of money that India uses to buy things from other countries.

So the government controls the imports of gold and silver through the Foreign Trade Policy and the Directorate General of Foreign Trade.

Only certain banks and agencies are allowed to import gold and silver.

This is to make sure that everything is transparent and easy to monitor.

2. What has the government announced?

In April 2026 the Directorate General of Foreign Trade made an announcement about the new list of banks that are allowed to import gold and silver.

There are 15 banks that can import both gold and silver.

There are 2 banks that can only import gold.

This list is valid from 1 April 2026 to 31 March 2029.

The list was made based on what the Reserve Bank of India said.

It is part of the Foreign Trade Policy 2023.

This new list replaces the one that expired on 31 March 2026.

3. List of banks that are allowed to import gold and silver

There are some banks that are allowed to import both gold and silver.

These banks are:

State Bank of India

HDFC Bank

ICICI Bank

Axis Bank

Punjab National Bank

Bank of India

Kotak Mahindra Bank

IndusInd Bank

Yes Bank

Federal Bank

Indian Overseas Bank

Karur Vysya Bank

RBL Bank

Deutsche Bank

Industrial and Commercial Bank of China

There are also 2 banks that can only import gold.

These banks are:

Union Bank of India

SBER Bank

This shows that the government is being careful and controlled about how gold and silver’re imported.

4. Why was this change necessary?

There were some problems that needed to be fixed.

The list of banks was usually announced at the start of the year but this time it was delayed.

This caused some problems.

Some gold and silver were stuck at customs. Could not be imported.

Banks were not sure if they could import gold and silver.

Also there was a festival coming up called Akshaya Tritiya, where a lot of people buy gold.

If the government did not update the list of banks there might not be gold available and prices might go up.

The government needed to make things clear and fix the problems.

So they updated the list of banks to make sure that everything was okay.

5. Role of the Foreign Trade Policy

The Foreign Trade Policy is like a set of rules that the government uses to control trade.

It says that the Directorate General of Foreign Trade can decide which banks are allowed to import gold and silver.

It also says that imports of metals like gold and silver are restricted and only certain banks and agencies can import them.

All the rules are written down in a book called the Handbook of Procedures.

The update in 2026 was a change to the Foreign Trade Policy.

It was made to fix some problems and make things clearer.

6. How the system works

The Reserve Bank of India decides which banks are eligible to import gold and silver.

The Directorate General of Foreign Trade makes an announcement about the list of banks.

The banks then import gold and silver from countries.

They sell the gold and silver to jewellers, bullion dealers and industries that use them.

This system makes sure that everything is transparent and controlled.

It helps to prevent smuggling and black market activity.

7. Why this decision is important

The decision to update the list of banks is important for reasons.

It helps to make sure that there is gold and silver available in the country.

It prevents prices from going down too much.

It also helps the jewellery industry, which’s a big part of Indias economy.

It helps the government to control the trade deficit and manage the countrys finances.

8. How this decision affects people

The decision affects banks, jewellers, consumers and the government.

Banks get the right to import gold and silver. They can earn money from it.

Jewellers depend on banks for gold and silver. They benefit from a stable supply.

Consumers are affected indirectly because the price of gold and jewellery can go up or down.

The government gets control over imports, tax collection and foreign exchange.

9. Connection to policy changes

This decision is part of a bigger effort to control the trade of precious metals.

Recently the government made it harder to import gold and silver jewellery.

Now people need licences to import them.

The goal is to protect the industry and prevent people from misusing trade agreements.

10. Problems and challenges

There are some problems that India still faces.

The country is still dependent on imports for most of its gold.

This makes it vulnerable to changes in prices.

There is also a risk of smuggling because the duties on gold and silver are high.

There can be delays in policy decisions, which can disrupt the supply chain.

Finally global events like wars and inflation can affect the prices of gold and silver.

11. Why only banks are allowed to import gold and silver

Only banks are allowed to import gold and silver because they are regulated by the Reserve Bank of India.

They have to keep records and follow anti-money laundering rules.

This makes it harder for people to engage in activities.

It also provides transparency. Helps to prevent tax evasion.

12. Bigger picture

Indias policy on gold imports is connected to its economic goals.

The government wants to control inflation keep the currency stable and manage exchange.

When gold imports go up the rupee can. The trade deficit can increase.

So the government uses tools like import duties and authorisation systems to control the flow of gold and silver.

13. Key points to remember

The Directorate General of Foreign Trade updated the list of banks that can import gold and silver.

15 Banks can import both gold and silver and 2 banks can only import gold.

The list is valid until March 2029.

The goal is to streamline imports clear the customs backlog and ensure supply stability.

14.

The governments decision to update the list of banks that can import gold and silver is a step in regulating trade.

It shows how the government balances the demand, for gold and silver with the need to control the economy and manage the trade deficit.

By allowing certain banks to import gold and silver the government can make sure that everything is transparent and controlled.

This helps to achieve the countrys goals and prevent problems.