Reserve Bank of India on 7 June 2013 extended the restriction on advance against gold on co-operative banks set to curb the demand for gold.
The decision taken by RBI was in the backdrop of Government raising the import duty on gold to 8 per cent from 6 per cent.
As per the RBI, while granting advance against the security of specially minted gold coins sold by banks, state/central co-operative banks should ensure that the weight of the coin(s) does not exceed 50 grams per customer.
RBI has also asserted that the amount of loan to any customer against gold ornaments, gold jewellery and gold coins (weighing up to 50 grams) should be within the board approved limit.
An advisory has also come up from the Central Bank in regard to selling of gold coins. High rise in gold imports has become a cause for concern for both the government as well as the RBI as it is putting pressure on the current account deficit, which is likely to be around 5 per cent of the GDP in 2012-13.
If we see the statistics of gold imports there is surely significant spurts in first two months of current fiscal 2013-14, to present an appropriate figure the average imports stood at 152 tonnes in April and May 2013. The monthly average import in 2012-13 was 70 tonnes. The increase in gold import is accredited to the bend in its prices in the international market.
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