Under pressure to curb demand, RBI further tightens gold import norms
Mumbai: The Reserve Bank of India took further measures to curb demand for gold, saying imports of the precious metal against suppliers' or buyers' credit will be on 100 percent cash margin, and on document against payment basis, in an effort to rein-in a record-high current account deficit.
These measures will also apply to gold imports on an unfixed price basis with immediate effect, a notification from the central bank said on Thursday.
However, the central bank said import of gold for lending on to jewellery exporters is still allowed.
The current account deficit hit a record high 4.8 percent of gross domestic product in the fiscal year that ended in March, fuelled by rising imports of oil and gold, but was lower than an expected gap of 5 percent, giving a boost to the battered rupee.
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