Mumbai: The Reserve Bank of India announced withdrawal on Friday with immediate effect of the gold import restrictions popularly known as the “80:20” scheme.

Introduced in August last year to control the country’s widening current account deficit (CAD), the rule enjoined all gold importers to supply at least 20 per cent of the quantity brought in to jewellery exporters. Permission for subsequent import would be given only on fulfilment of this export obligation. The RBI action follows the government’s decision to ease the restriction. With this, supply of gold should ease and smuggling gets a significant check. It will also reduce the documentation work at Customs offices, helping jewellers.

“Scrapping of 80:20 will automatically control gold smuggling. It will also ease supply for local jewellers and exporters,” said a pleased Haresh Soni, chairman, All India Gems and Jewellery Trade Federation.