“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issued about the scheme from time to time starting with A.P. (DIR Series) Circular No.25 dated August 14, 2013 stand withdrawn with immediate effect,” the bank said.

“India’s so-called 80:20 gold import rule was introduced in 2013. The restriction required traders to export 20 percent of all gold imported into India in an attempt to slow gold imports. That change sparked a rise in gold-smuggling activities, forcing gold consumers to resort to various extreme measures.”