Federation of Gold and Silver Traders, Federation of Gems and Jewelery Traders, Federation of Handicrafts and Gem Jewelery Association, Association of Gold and Silver Art Traders and Association of Gold and Silver Traders (Centre) have been giving recommendations to traders for buying gold.
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Gold Business Associations/Confederations will not be able to charge fees from businessmen while recommending the purchase of gold. Earlier, Nepal Rastra Bank's Foreign Exchange Management Department issued the directive on Tuesday based on the complaint that gold business associations/confederations charged arbitrary fees while recommending the purchase of gold to businessmen.
According to the new arrangement, now gold business associations/confederations will have to give free recommendations to businessmen for buying gold. "As there is a provision that no recommendation fee or fee can be charged when the Gold Business Association/Confederation recommends businessmen to purchase gold from commercial banks, a notification has been issued to do accordingly," the directive said.
Only commercial banks can import gold in Nepal. Businessmen should buy from commercial banks. Buying gold from a bank requires a recommendation from a business-related association or federation. In this way, while recommending the purchase of gold to the businessmen, the Association/Confederation used to charge up to Rs 6,000 per kg. After this complaint reached the National Bank, it has been arranged that no such recommendation fee can be charged.
Gold import and sale distribution procedure 2068 states that when the association/confederation recommends the purchase of gold, no fee can be charged from the businessmen. However, Ramu Paudel, the spokesperson of Nepal Rastra Bank, said that after receiving complaints and complaints that the association/confederation was charging recommendation fee contrary to the rules, instructions were issued to stop it.
In the existing law, there is a provision that no fee can be charged from the businessmen when the union/federation gives a recommendation. But associations/organizations have been collecting fees from businessmen," said spokesperson Paudel, "Rastra Bank has issued instructions to prevent that distortion."
At present, Nepal Gold and Silver Dealers Federation, Gems and Jewelery Dealers Federation, Handicrafts Federation and Gem Jewelery Association, Gold and Silver Art Dealers Association and Nepal Gold and Silver Dealers Association (Center) have been giving recommendations to businessmen for buying gold. Businessmen complain that the mentioned federations and associations are charging referral fees arbitrarily. The businessmen complained to various agencies including the National Bank, the Ministry of Commerce, saying that the distortion has increased due to the arbitrary nature of the recommendation fee.
Even if the National Bank issues instructions not to charge fees, it cannot take action against businessmen who default. Because gold and silver business associations/confederations and businessmen are beyond the regulation of the National Bank. However, the National Bank may instruct the commercial banks not to listen to the non-compliant associations/confederations and businessmen even after issuing the instructions. Experts say that gold and silver traders, associations and federations must follow the instructions of the National Bank.
