Indian Banks Resume Bullion Imports After Month-Long Halt

Indian banks have resumed bullion imports following a month-long suspension triggered by a dispute over a three per cent levy on precious metal consignments, according to sources familiar with the matter. The resumption signals a resolution of the standoff between financial institutions and regulatory authorities over the contentious duty structure.

The halt had created supply shortages in India's vast gold market, one of the world's largest by consumption, and had driven up domestic premiums relative to international spot prices. Jewellers and traders had warned of disruptions to wedding season demand, which represents a critical consumption period in the subcontinent.

Sources indicate that the resumption followed clarifications from relevant authorities regarding the applicability and scope of the levy, allowing banks to proceed with import orders that had been in abeyance. The exact terms of the resolution have not been formally confirmed by official channels.

The development carries regional significance given India's dominant role in global gold demand. A resumption of imports is expected to exert upward pressure on international bullion prices in the near term, with knock-on effects for markets across South Asia, including Pakistan where domestic prices closely track global movements.