The Indian government has granted permission to 15 banks, including State Bank of India, HDFC Bank, Axis Bank and Bank of India, to import gold and silver for a three-year period running from April 1, 2026 to March 31, 2029, in a move that formalises and extends the authorised channel framework for precious metal imports into the country.
The authorisation covers both gold and silver imports, providing the designated banks with a multi-year runway to plan and execute bullion procurement on behalf of jewellers, refiners, and other end-use entities that depend on imported precious metals for their operations. A three-year authorisation window — as opposed to the annual renewals that have historically characterised such permissions — signals a degree of policy stability in the bullion import framework that the industry has long sought.
Why This Matters for India’s Bullion Market
India is the world’s second-largest consumer of gold, with annual demand driven by jewellery fabrication, investment buying, and industrial applications. The country imports virtually all of the gold it consumes, making the list of authorised importing banks a critical piece of the supply chain infrastructure for the domestic precious metals industry. Silver imports, while smaller in absolute value, are significant for India’s solar panel manufacturing sector, silverware and jewellery industry, and electronics supply chain — all of which have been growing rapidly.
The inclusion of large public sector banks alongside private sector majors in the authorised list ensures that import capacity is distributed across a wide institutional base, reducing concentration risk in the bullion supply chain and providing jewellers and refiners across different geographies with banking relationships that can facilitate imports directly.
The timing of the authorisation — effective from April 1, 2026, the start of the new financial year — also aligns with India’s broader push to manage its current account in a structured manner, with authorised bank imports providing the government with better visibility into precious metal inflows compared to other channels.
The Iran War Context and Import Cost Pressures
The authorisation comes at a moment when India’s import bill is under significant pressure from the Iran war’s impact on energy costs and the rupee’s depreciation. Gold, priced in dollars globally, becomes more expensive in rupee terms as the currency weakens — a dynamic that has been playing out sharply since the Hormuz closure drove the rupee toward record lows near ₹95 per dollar earlier this year before a partial recovery to ₹93.23 on ceasefire optimism.
A formalised, multi-year import authorisation for banks allows the authorised entities to enter into forward contracts and hedging arrangements that can partially mitigate currency risk for their bullion import clients — a practical benefit that single-year authorisations make more difficult to structure efficiently.
The 15 Authorised Banks
The authorised list includes State Bank of India, HDFC Bank, Axis Bank and Bank of India among the named institutions, with 11 additional banks also granted import permission under the framework. The combination of the country’s largest public sector bank, its largest private sector bank by assets, and major mid-tier lenders ensures that precious metal import capacity exists across the full spectrum of India’s banking system and its geographic footprint.
The three-year validity of the authorisation through March 31, 2029 gives the designated banks sufficient time to build dedicated bullion desks, establish correspondent relationships with international refiners and suppliers, and develop the operational infrastructure to handle precious metal imports at scale — investments that are difficult to justify under annual renewal frameworks where policy continuity cannot be assumed.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are advised to consult a SEBI-registered financial advisor before making any investment decisions.