Press Esc to close
Saturday 22 July 2017
News updated at 8:20 PM IST

RBI tightens rules to curb gold imports

Mumbai, May 3, 2013, (IANS): 19:42 IST
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
Women sizing up a painting put on display as part of an art exhibition against communalism...

Women sizing up a painting put on display as part of an art exhibition against communalism...

Full dress rehearsal of oath taking ceremony of President-elect Ram Nath Kovind...

Full dress rehearsal of oath taking ceremony of President-elect Ram Nath Kovind...

A green parrot nestled in a tree hollow, in Chennai...

A green parrot nestled in a tree hollow, in Chennai...

A Hindu devotee offering snake in Burhi Gandak river, on the eve of Sawan Amavasya...

A Hindu devotee offering snake in Burhi Gandak river, on the eve of Sawan Amavasya...

A peacock butterfly can be seen sitting inside a sunflower near Celle, Germany...

A peacock butterfly can be seen sitting inside a sunflower near Celle, Germany...

Kawad yatri waiting for their turn in a queue outside a Shiv temple in Meerut...

Kawad yatri waiting for their turn in a queue outside a Shiv temple in Meerut...

A farmer ploughs his paddy field during monsoon session at a village near Balurghat in South...

A farmer ploughs his paddy field during monsoon session at a village near Balurghat in South...

Chennaiyin FC Co-owner and actor Abhishek Bachchan reacts during a press conference...

Chennaiyin FC Co-owner and actor Abhishek Bachchan reacts during a press conference...

Exile Tibetans hold posters of the late Nobel laureate Xiaobo Liu during a prayer service...

Exile Tibetans hold posters of the late Nobel laureate Xiaobo Liu during a prayer service...

Temples submerged in flooded waters of Narmada river at Gwarighat in Jabalpur...

Temples submerged in flooded waters of Narmada river at Gwarighat in Jabalpur...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.