The Indian government's approval delay has led to several banks suspending the import of gold and silver.

Trade sources said that due to the Indian government not yet issuing formal instructions authorizing the import of precious metals, Indian banks have suspended placing orders for gold and silver imports with overseas suppliers, and several tons of precious metals are currently stuck at customs. The Directorate General of Foreign Trade, a department under the Ministry of Commerce and Industry in India, typically issues instructions at the beginning of each fiscal year listing the banks authorized by the Reserve Bank of India to import gold and silver. The previous instructions were issued in April 2025 and were valid until the end of the previous fiscal year on March 31, with banks now awaiting new instructions from the Directorate General of Foreign Trade. A precious metal trader at a private bank in Mumbai said that the bank had expected the Directorate General of Foreign Trade to issue instructions in early April as usual, but there has been no update so far, with over 5 tons of gold currently stuck at customs unable to clear. The trader, who requested anonymity for speaking to the media without authorization, said that the uncertainty surrounding the timing of the instructions from the Directorate General of Foreign Trade has led to banks halting the placement of new import orders with overseas suppliers. Sources revealed that around 8 tons of imported silver are similarly stuck at customs awaiting clearance. Another precious metal trader said that with goods unable to clear customs previously, placing new orders at this time would be meaningless. Data from the World Gold Council shows that India's gold demand in 2025 dropped to 710.9 tons, the lowest level in five years.