The Nepal Rastra Bank (NRB) has allowed all commercial banks in the country to import gold under the Open General License (OGL) scheme as per the provision in the Finance Ordinance.

Under the new provision– that is likely to add revenue for the cash-strapped government, any firm or company registered with the concerned agency of the government and has permission to carry out activities related to gold business can import unlimited amount of gold by opening letter of credit or draft and TT, reports said.

In addition to private firms or companies, commercial banks are also allowed to import gold for business purpose.

NRB officials said the new provision was expected to end the existing supply constraints and help encourage gold ornaments exports.

The Kathmandu Post daily quoted Ram Prashad Adhikari, Chief of foreign exchange department of the NRB as saying that the purpose of opening the import of gold is to discourage illicit import of gold from India.

Earlier, the government had categorized gold under the items banned for import and “Jhiti Gunta” (the baggage) rule used to be the main source of gold for domestic consumption.

Under the baggage rule, Nepali citizens returning home after staying abroad for at least six months could bring up to 10 kgs of gold by paying customs duties.

According to statistics, Nepal annually consumes 10-12 tons of gold.