Under pressure to curb demand, RBI further tightens gold import norms

hidden June 28, 2013 08:41:55 IST
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.

Under pressure to curb demand RBI further tightens gold import norms

Reuters

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.

Reuters

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

RBI chief Shaktikanta Das says economic recovery 'stronger than expected', but warns of downside risk due to recent COVID-19 surge
India

RBI chief Shaktikanta Das says economic recovery 'stronger than expected', but warns of downside risk due to recent COVID-19 surge

The central bank which has introduced many unconventional measures to aid recovery apart from cutting key rates by 1.15 percent, expects the Indian economy to shrink by 9.5 percent in FY21

Ex-World Bank economist says RBI's proposal to allow businesses into banking is 'good-looking' step in 'bad direction'
India

Ex-World Bank economist says RBI's proposal to allow businesses into banking is 'good-looking' step in 'bad direction'

Kaushik Basu added that there is a good reason that all successful economies have a clear line between industries and corporations on one hand, and banks and lending organisations on the other

Laxmi Vilas Bank, DBIL merger effective from 27 Nov, says RBI after Cabinet nod
Business

Laxmi Vilas Bank, DBIL merger effective from 27 Nov, says RBI after Cabinet nod

The moratorium imposed on the crisis-ridden lender will be removed on Friday and depositors of LVB will be able to operate their accounts as customers of DBS Bank India from that day, said the Central bank