Participation Of Indian Banks On India International Bullion Exchange IFSC Limited

RBI, vide circular dated February 9, 2024, permits a branch/ subsidiary/ joint venture of an Indian bank in GIFT-IFSC to act as a Trading Member (“TM”)/ Trading and Clearing Member (“TCM”) of IIBX, and Indian banks are authorised to import gold/silver to act as Special Category Client1 (“SCC”) of India International Bullion Exchange IFSC Limited (“IIBX”). Prior to its branch/subsidiary/joint venture in GIFT-IFSC seeking TM/TCM status on IIBX, the parent bank must seek a no objection certificate from RBI. The TM/TCM must execute trades only on behalf of clients (without proprietary trading). As per the extant Foreign Trade Policy, the RBI grants annual import authorisation to banks for import of gold/silver. Such banks, in addition to the consignment model in domestic tariff area, are allowed to operate as a SCC on IIBX for import of gold/silver. The SCC must execute only buy trades on behalf of clients. Banks must ensure adherence to extant RBI instructions as contained in the Master Circular – Loans and Advances – Statutory and Other Restrictions dated July 1, 2015.

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