DBOD.No.IBS.1410/23.67.001/97-98

January 1, 1998

The Chief Executives of the Banks nominated to import gold/silver

Dear Sir,                                                               

Import of Gold/Silver

As you are aware, RBI had convened a meeting of banks which have been allowed to deal in gold, on 25th November 1997, during which various issues including those relating in introduction of gold related products and arranging of gold loan from foreign suppliers were discussed. In this context we have come across certain news reports regarding launching of gold related products by banks. It may be noted that introduction of any gold deposit scheme or other gold related products and also entering into arrangements for borrowing gold from abroad or in India would require prior approval of RBI.

Yours faithfully,

(Devaki Muthukrishnan)

General Manager