The government has authorised 15 leading banks to bring in gold and silver over a three-year window ending March 2029. A government notification issued on Friday says that major lenders such as State Bank of India, HDFC Bank, and Bank of India, along with several others, have been granted permission to import the precious metals for the period spanning April 1, 2026 to March 31, 2029, according to a Reuters report.Earlier, a Reuters report said that banks had put a pause on fresh import orders for gold and silver from overseas suppliers. Large quantities of gold and silver are stranded at customs, as a formal government notification permitting bullion imports was yet to be issued.Typically, the Directorate General of Foreign Trade, operating under the Ministry of Commerce and Industry, issues a notification at the beginning of each financial year specifying the banks authorised by the Reserve Bank of India to import gold and silver. The absence of new shipments could tighten domestic availability, given that India, the world’s second-largest consumer of gold and the largest buyer of silver, depends almost entirely on imports to meet demand, according to the Reuters report.Lower domestic demand may exert downward pressure on global bullion prices, while also helping to reduce India’s trade deficit and lend support to the rupee, which has been among the weaker Asian currencies this year.Officials have taken several steps to ease pressure on the currency, including recently advising refiners to limit spot dollar purchases.Banks had anticipated that the Directorate General of Foreign Trade would release its annual notification in early April, as is customary. More than five tonnes of gold remain held up at customs without clearance, according to a Mumbai-based bullion dealer at a private bank quoted by Reuters.In addition, about eight tonnes of imported silver are also awaiting customs clearance, sources noted.India’s gold consumption declined to 710.9 metric tonnes in 2025, marking a five-year low, as per data from the World Gold Council. Meanwhile, inventories built from earlier imports are gradually being drawn down, with the market increasingly relying on sales from exchange-traded funds that are witnessing outflows, sources added.A bullion dealer based in Kolkata suggested that the government may be slowing imports to manage the trade deficit, as rising prices of oil, gas and fertilisers following the Iran conflict are expected to increase India’s import bill in April.
