Authorized Dealers — Gold & Silver Market Directory

The journey of gold and silver from international markets to Indian consumers follows a tightly regulated chain. At the top sit the 16 RBI-nominated banks — institutions like SBI, HDFC Bank, ICICI Bank, and Axis Bank — authorised by the Reserve Bank of India to import bullion on a consignment or outright purchase basis. These banks receive shipments from LBMA-approved refineries, typically through logistics handlers such as Brinks India, and distribute the metal to authorised dealers, refineries, and large jewellery manufacturers. Four public-sector canalizing agencies (MMTC, PEC, HHEC, and MSTC) also hold import licences, a legacy of India's earlier trade-control regime.

The RBI limits the number of nominated banks to maintain oversight over bullion inflows, which directly affect India's current account deficit. This restricted pipeline is why only 16 banks hold active nominations — each must demonstrate the infrastructure to handle physical gold custody, comply with RBI reporting norms, and maintain anti-money-laundering controls. The concentration of import authority in a small set of banks has historically given them pricing power over downstream dealers, though this dynamic is evolving.

Dealers in Precious Metals and Stones (DPMS) form the next layer. Under the Prevention of Money Laundering Act (PMLA), every entity dealing in precious metals above prescribed thresholds must register with FIU-IND, maintain KYC records for transactions of Rs 50,000 and above, and file suspicious transaction reports. DPMS registration is not optional — it is a legal obligation that brings jewellers and bullion traders under the same anti-money-laundering framework as banks and financial institutions. This compliance burden has professionalised the sector, pushing out unorganised operators.

The distinction between wholesale and retail dealers matters. Wholesale dealers, often called OTC (over-the-counter) market participants, trade in large lots — typically 1 kg bars and above — and set the benchmark prices that jewellers reference. Firms like RSBL, Augmont, and M.D. Overseas operate in this space, acting as market makers who quote two-way prices throughout the trading day. Retail dealers, by contrast, sell smaller denominations directly to consumers or small jewellers.

The India International Bullion Exchange (IIBX), operational since July 2022 in GIFT City, has introduced a significant structural change. IIBX allows qualified jewellers to import gold directly through the exchange, bypassing the traditional bank-dealer intermediation chain. This disintermediation lowers the cost of acquisition for large jewellers and introduces transparent, exchange-discovered pricing. MCX and IIBX vault infrastructure — operated by Brinks, Sequel Logistics, and Malca-Amit — enables physical delivery against exchange contracts, bridging the gap between paper trading and physical settlement that the Indian market demands.