Winning Bizness Desk
Mumbai. The Centre has granted fresh licences to 15 major banks, including State Bank of India, Punjab National Bank and HDFC Bank, to import gold and silver till March 31, 2029, a move aimed at stabilising domestic supply ahead of the festive and wedding season.
New licences effective from April 1, 2026
The approval has come into force from April 1, 2026, with the Directorate General of Foreign Trade under the Commerce Ministry issuing a formal notification. The decision ends uncertainty in the bullion trade that had emerged after the previous licence period expired on March 31, 2026, without an immediate extension.
The inclusion of top lenders ensures that imports will continue through regulated banking channels, maintaining transparency and supply discipline in the market.
Decision timed before festive buying peak
The announcement comes just days before Akshaya Tritiya on April 19, a key occasion for gold purchases in India. The festival, along with the wedding season, accounts for nearly 15 to 20 percent of annual retail gold sales.
Recent softening in prices has further encouraged buying sentiment, with analysts describing the current phase as favourable for consumers looking to invest in jewellery and bullion.
Market reaction after supply concerns eased
Uncertainty had escalated after reports suggested banks had halted fresh import orders due to the absence of a formal notification. As a result, several consignments were stuck at customs, disrupting supply chains.
The developments triggered sharp movements in the stock market and bullion trade:
- Kalyan Jewellers shares dropped by around 6 percent
- Titan Company saw a fall of nearly 3 percent
- MMTC shares surged by about 16 percent
- Gold and silver prices declined in domestic markets
The fresh notification is expected to restore normalcy and confidence across the sector.
Benefits for consumers and jewellery buyers
The move is likely to directly benefit retail buyers by ensuring steady supply and fair pricing in the market:
- Availability: No shortage of gold and silver during peak demand periods
- Pricing: Reduced chances of jewellers charging extra premium
- Quality: Assured purity through regulated and legal import channels
This is expected to particularly help middle-class consumers planning purchases during weddings and festivals.
Focus on trade balance and regulation
India remains one of the world’s largest consumers of gold, though demand fell to 710.9 metric tonnes in 2025, marking a five-year low, according to the World Gold Council. Rising global oil and gas prices amid tensions involving Iran are expected to increase the country’s import bill.
To manage the trade deficit, the government is tightening oversight on bullion imports, ensuring they pass through authorised routes.
The step is also aimed at curbing illegal trade, improving transparency, and giving clarity to jewellers, refiners and institutional buyers for the next three years. Earlier delays in notification had led to consignments worth crores being stuck at ports, raising fears of supply shortages and price spikes in the domestic market.
