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DBOD.No.
IBS.1816/23.67.001/98-99 February 4, 1999 Magh 15, 1920 (Saka)
Dear Sir, Sale of
gold/silver/platinum- payment in cash Please refer to our circular DBOD.
No. BP. BC. 114/C. 469(81)-91 dated 19 April 1991 which stipulates that in
order to curb the misuse of banking channels for violation of fiscal laws and
evasion of taxes, Demand Drafts, Mail Transfers, Telegraphic Transfers and
Travellers Cheques for Rs. 50,000/- and above should be issued by banks only
by debit to the customer's account or against cheques or other instruments
tendered by the purchaser and not against cash payment. 2. Some of the banks authorised
to import gold/silver/platinum have sought clarification from us whether the
instructions contained in our circular mentioned above are also applicable in
the case of retail sale of gold by the authorised banks. It is clarified that
the above instructions are applicable to sale of gold/silver/platinum also.
Banks should, therefore, ensure that payment towards sale of
gold/silver/platinum of the value of Rs. 50,000/- and above is received only
by debit to the customer's account or against cheques or other instruments
tendered by the purchaser and not in cash. Yours faithfully, (Devaki Muthukrishnan) General Manager |