Press Esc to close
Monday 29 August 2016
News updated at 6:07 PM IST
Weather
Max: 27.4°C
Min : 20.8°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
Bollywood actress Sonakshi Sinha during her forthcoming movie Akira's promotion in Mumbai...

Bollywood actress Sonakshi Sinha during her forthcoming movie Akira's promotion in Mumbai...

Ranbir Kapoor displays creations by Kunal Rawal during the Lakme Fashion Week in Mumbai...

Ranbir Kapoor displays creations by Kunal Rawal during the Lakme Fashion Week in Mumbai...

Bollywood actor Shilpa Shetty displays the creation of fashion designer Anushree Reddy...

Bollywood actor Shilpa Shetty displays the creation of fashion designer Anushree Reddy...

Pooja Hegde displays the creation of fashion designers Monica Shah and Karishma Swali...

Pooja Hegde displays the creation of fashion designers Monica Shah and Karishma Swali...

Dilip Tirkey aand sand artist Sudarshan Patnaik unveil a jersey in front of a sand image...

Dilip Tirkey aand sand artist Sudarshan Patnaik unveil a jersey in front of a sand image...

An Idol Lord Ganesha being boarded into a train in Mumbai...

An Idol Lord Ganesha being boarded into a train in Mumbai...

Former South African cricketer Jonty Rhodes enjoys surfing at Kovalam beach near Chennai...

Former South African cricketer Jonty Rhodes enjoys surfing at Kovalam beach near Chennai...

Pascal Mueller competes in the stone put during the Swiss Alpine Wrestling and Herdsman Festival...

Pascal Mueller competes in the stone put during the Swiss Alpine Wrestling and Herdsman Festival...

Mercedes driver Nico Rosberg of Germany gives the thumbs up as he holds his trophy...

Mercedes driver Nico Rosberg of Germany gives the thumbs up as he holds his trophy...

Bollywood Actor Bipasha Basu displays the creation of fashion designer Sanjukta Dutta collection...

Bollywood Actor Bipasha Basu displays the creation of fashion designer Sanjukta Dutta collection...

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