Indian Banks Halt Gold And Silver Imports Amid Clearance Delay

Indian banks have temporarily halted gold and silver import orders as shipments remain stuck at customs due to delays in government clearance. The Directorate General of Foreign Trade (DGFT) has yet to issue its annual authorization order, leaving more than 5 tonnes of gold and around 8 tonnes of silver unable to enter the domestic market, according to trade sources.

The disruption has led banks to pause new overseas orders, as uncertainty persists over when the required directive will be issued. Typically released at the start of the financial year, the DGFT order identifies banks permitted by the Reserve Bank of India to import bullion. With last year’s approval expiring on March 31, the absence of a fresh notification has effectively frozen imports.

The halt could tighten supply in India, which depends heavily on imports to meet gold and silver demand. Analysts say weaker imports may ease pressure on the rupee and narrow the trade deficit, but could also lead to shortages and rising premiums, especially ahead of key buying periods such as Akshaya Tritiya.