Gold ETF inflows accounted for 22% of all gold imports in January, while silver ETF inflows constituted 52% of silver imports. (Image generated using Google Gemini)
The Indian government has authorised 17 banks to import bullion for three years starting April 1. In an order dated Friday, the commerce ministry’s Directorate General of Foreign Trade (DGFT) said 15 banks, including public sector lenders like State Bank of India, private ones like HDFC Bank, and foreign ones such as Industrial and Commercial Bank of China were authorised by the Reserve Bank of India to import both gold and silver from April 1 to March 31, 2029.
A further two banks – Union Bank of India and Russia’s Sberbank – have been authorised to import only gold.
Last year, the list of authorised banks was issued on April 3, although the approval was for only 2025-26.
The list issued on Friday is a larger one, with Deutsche Bank and Indian Overseas Bank permitted to import both gold and silver. Last year, Indian Overseas Bank was allowed to import only gold. Meanwhile, the addition of Sberbank to the list for importing only gold is also new.
The non-issuance of the list of banks eligible for importing bullion had “effectively halted gold imports,” Madhavi Arora, Chief Economist at Emkay Global Financial Services, said.
Reuters had reported earlier on Friday that the non-issuance of the list of approved banks had led to more than 5 tonnes of gold and around 8 tonnes of silver being stuck without customs clearance.
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India is the second-largest importer of gold and brought in $72 billion worth of it in 2025-26, 24% higher than in 2024-25. Silver imports in the last fiscal amounted to $12 billion, more than double the $4.8 billion imported the previous year. A surge in prices of gold and silver led to Indians buying gold and silver heavily in the second half of 2025-26 through routes such as Exchange Traded Funds (ETFs). In January, Indians invested more in gold ETFs (Rs 24,040 crore) than equity mutual funds (Rs 24,029 crore) for the first time. Meanwhile, silver ETF inflows rose to Rs 9,463 crore in January. Gold ETF inflows accounted for 22% of all gold imports in January, while silver ETF inflows constituted 52% of silver imports.
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The delay in the issuance of the authorisation list comes after the DGFT on April 2 changed the classification of gold, silver, and platinum products to ‘restricted’ from ‘free’, with importers other than those in Special Economic Zones and Export Oriented Units requiring a licence from the government.
According to Kavita Chacko, India Research Head at World Gold Council, the difference between domestic and international gold prices narrowed to around $8 per ounce (oz) in the first two weeks of April after having traded at a “sustained discount” of $46/oz in March.
“The narrowing is attributed to tighter supply conditions following curbs on imports of platinum alloys (containing more than 1% gold by weight), along with broader restrictions on gold, silver, and platinum jewellery imports. In addition, anecdotal reports suggest operational bottlenecks, particularly delays in customs clearance of bullion consignments of nominated banks, further tightened supply,” Chacko said in a note on Friday.
