Press Esc to close
Saturday 25 June 2016
News updated at 2:51 AM IST
Weather
Max: 25.7°C
Min : 19.8°C
In Bengaluru
Generally cloudy

RBI tightens rules to curb gold imports

Mumbai, May 3, 2013, (IANS):
File photo.

The Reserve Bank of India (RBI) Friday said it will tighten regulations for overseas purchase of gold by banks and restrict loan facilities to curb the import of the yellow metal.

In its annual monetary policy for fiscal 2013-14, the central bank said it will announce detailed guidelines by the end of this month that would help curb gold imports.

“With a view to reducing the demand for gold for domestic use, it is proposed to  restrict the import of gold on consignment basis by banks only to meet the genuine needs of exporters of gold jewellery,” the RBI said.

The central bank said the new guidelines would be in line with the recommendations of a working group on gold that has suggested “aligning gold import regulations with the rest of imports with a view to reducing gold imports by creating a level playing field between gold imports and other imports.”

The RBI also proposes to restrict the facility of advancing loan against gold coins to a maximum weight of 50 grams.

As per the regulations, banks are currently permitted to grant advances against gold ornaments and other jewellery and against specially minted gold coins sold by banks.
However, no advances can be granted by banks for purchase of gold in any form, including primary gold, gold bullion, gold jewellery, gold coins, units of gold exchange traded funds and units of gold mutual funds.

“While there may not be any objection to grant of advances against specially minted gold coins sold by banks, there is a risk that some of these coins would be weighing much more, thereby circumventing the Reserve Bank’s guidelines regarding restrictions on grant of advance against gold bullion,” the RBI said.

“Accordingly, it is proposed to restrict the facility of advances against the security of gold coins per customer to gold coins weighing up to 50 grams,” it said.


Go to Top

Photo Gallery
BJP activists holding a protest in front of Ram Remple in Bhubaneswar on Friday...

BJP activists holding a protest in front of Ram Remple in Bhubaneswar on Friday...

Puneri Paltan captain Manjeet Chillar poses for media during a press conference of Pro Kabaddi...

Puneri Paltan captain Manjeet Chillar poses for media during a press conference of Pro Kabaddi...

John Abraham, Varun Dhawan and Jacqueline Fernandez during the pramotion...

John Abraham, Varun Dhawan and Jacqueline Fernandez during the pramotion...

Former cricketer Venkatesh Prasad being feliciated with an Assamese traditional ...

Former cricketer Venkatesh Prasad being feliciated with an Assamese traditional ...

Modi paying floral tributes at the bust of former Prime Minister Lal Bahadur Shastri...

Modi paying floral tributes at the bust of former Prime Minister Lal Bahadur Shastri...

Prime Minister Narendra Modi interacts with Indian community children in  Tashkent...

Prime Minister Narendra Modi interacts with Indian community children in Tashkent...

Children of Madarsa Maulana Azad Upper Primary School pray for rains in Jodhpur ...

Children of Madarsa Maulana Azad Upper Primary School pray for rains in Jodhpur ...

Launch of the Rolls-Royce Dawn in Mumbai...

Launch of the Rolls-Royce Dawn in Mumbai...

Prime Minister Narendra Modi shakes hands with Russian President Vladimir Putin during...

Prime Minister Narendra Modi shakes hands with Russian President Vladimir Putin during...

Finance Minister Arun Jaitley addresses the Invest in India Business Forum in Beijing...

Finance Minister Arun Jaitley addresses the Invest in India Business Forum in Beijing...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523