Mumbai, July 7: The Reserve Bank of India (RBI) has set a capital base of Rs 300 crore and a minimum capital adequacy ratio of 9 per cent as the two major preconditions for the scheduled commerical banks to be eligible for importing gold, silver and platinum.

The central bank on Monday announced the detailed eligbility criteria to apply for authorisation as a nominated agency to import precious metals.The exim policy 1997-2002 allows exporters availing schmes for gold/silver/platinum jewellery to obtain these metals from nominated agencies - scheduled commercial banks.

The nominated agencies are: MMTC, Handicraft and Handloom Export Corporation, State Trading Corporation and State Bank of India. According to RBI, the applicant should have an `unimpaired total capital of Rs 300 crore or more for its business in India'. In case the bank has a lower capital base, its global capital can be taken into consideration for the purpose. This will happen provided its head offices commit to offer support to its gold operation in the country, the RBI release said.

The applicants should possess an advanced risk management system in place to enable identification of various risks in the supply of gold to the eligible categories, besides evolving control measures. They should have had previous experience or familiarity in gold-related business activities. Banks which do not satisfy the requirement should provide sufficient evidence about its intention and ability to forge links with international banks which have a long standing experience, the release said.

Banks satisfying the conditions prescribed by the central bank are required to submit their applications along with a summary of the latest audited balance sheet and profit-and-loss account. Foreign banks will have to submit the audited financial statements of their local as well as global operations and their capital adequacy ratios separately.

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