The government stated in a notification released late on Tuesday that the Center has permitted its central bank to import gold without having to pay import tariffs.

Importers of gold from the second-largest gold consumer in the world are required to pay an Agriculture Infrastructure and Development Cess (AIDC) in addition to regular customs duty.

The Reserve Bank of India possessed 800.79 metric tonnes of gold as of September 2023, including 39.89 tonnes of gold deposits.

In the RBI's most recent reserve management report, 388.06 tonnes are stored abroad and 372.84 tonnes are held domestically. After recording their largest monthly loss the previous session, gold prices stabilized on Wednesday as a sticky U.S. inflation report increased bond yields and somewhat dampened expectations for a Federal Reserve interest rate drop in June.

Up 0.1% to $2,158.26 per ounce, spot gold was trading. Tuesday saw a 1.1% drop in gold prices, the worst one-day drop since data on February 13th indicated that consumer prices had also climbed more than anticipated in January.