The Indian government has done away with the '20:80' scheme imposed on gold imports, which will ease the incoming of yellow metal into the country, an official statement said Friday.
"It has been decided by the government of India to withdraw the 20:80 scheme and restrictions placed on import of gold. Accordingly, all instructions issued about the scheme from time to time starting with A.P. (DIR Series) Circular No.25 dated Aug 14, 2013 stand withdrawn with immediate effect," the Reserve Bank of India (RBI) said in a notification.
Under the scheme, 20 percent of the imported gold had to be exported before getting a new lot. The scheme was put in place in August 2013 to curb gold imports, which was considered as a major cause for the widening current account deficit of the country.
"Government today (Friday) has scrapped the 20:80 scheme. This will definitely help to reduce entry of smuggled gold in the country," Pankaj Parekh, vice-chairman, Gems and Jewellery Export Promotion Council told IANS.
India imported 95,673 kg of gold in September this year.