Module: | MODULE A: INTERNATIONAL BANKING
Q218: Consider the following statements regarding the India International Bullion Exchange established in the smart city:
Statement 1: The exchange framework allows eligible qualified jewellers to directly import physical gold and silver, effectively bypassing the traditional network of nominated domestic banks.
Statement 2: All physical bullion imports executed through this specialized exchange must be cleared, settled, and held exclusively in the form of electronic Bullion Depository Receipts.
Statement 2: All physical bullion imports executed through this specialized exchange must be cleared, settled, and held exclusively in the form of electronic Bullion Depository Receipts.
✅ Correct Answer: C
The India International Bullion Exchange was inaugurated to transition the nation from being a passive consumer of precious metals to an active price setter in the global market.
Statement 1 is correct.
Under the traditional domestic regime, only specific nominated agencies and banks could import gold.
The new framework democratizes this by allowing Qualified Jewellers who possess a minimum net worth of 250 million Indian Rupees to directly import bullion through the exchange.
Statement 2 is also correct.
To ensure secure trading and seamless customs clearance, physical gold brought into the specialized vaults is immediately dematerialized into Bullion Depository Receipts.
Trading and settlement occur entirely through these electronic receipts, which can later be extinguished when the physical metal is physically transported into the domestic tariff area.
Statement 1 is correct.
Under the traditional domestic regime, only specific nominated agencies and banks could import gold.
The new framework democratizes this by allowing Qualified Jewellers who possess a minimum net worth of 250 million Indian Rupees to directly import bullion through the exchange.
Statement 2 is also correct.
To ensure secure trading and seamless customs clearance, physical gold brought into the specialized vaults is immediately dematerialized into Bullion Depository Receipts.
Trading and settlement occur entirely through these electronic receipts, which can later be extinguished when the physical metal is physically transported into the domestic tariff area.