Friday, May 3rd 05:00 PM IST

RBI policies to curb India Gold imports

# RBI  # India gold reserves  # forex reserves  

RBI will issue detailed guidelines on gold imports by authorized banks by the end of this month after it sees banks also import gold on an unfixed price basis and loan basis, according to the central bank

NEW DELHI(BullionStreet): India's central bank announced more stringent measures for gold imports by banks in it's annual monetary statement.

Analysts said the move is likely to impact country's gold imports this year.

The central bank said banks will be allowed to import bullion on a consignment basis to meet only genuine needs of exporters of gold jewelry.

RBI will issue detailed guidelines on gold imports by authorized banks by the end of this month after it sees banks also import gold on an unfixed price basis and loan basis, according to the central bank

At present, the bulk of the imports by banks is on a consignment basis that doesn’t require them to fund the purchase, the bank said.

In India, at least 36 private and state-owned banks and companies including MMTC Ltd. And State Trading Corp are authorized to directly import bullion, according to the central bank.

World's largest gold consumer, India has tripled import taxes on gold from as low as 2% in January last year after the current-account shortfall, the broadest measure of trade, widened and the rupee slumped to a record against the US dollar.

India’s gold imports dropped 11% last year to 860 tons from a record 969 tons in 2011, the World Gold Council estimates. Demand for jewelry and investment fell to 864.2 tons in 2012, the second straight year of decline, it said.

How about a fully featured Android App for your business?

Most Popular

Bullion Street Newsletter