RBI imposes further restrictions on Gold Imports
BY Circular No. 103 dated 13.5.2013 (DDT 2104), RBI had restricted the import of gold on consignment basis by banks, only to meet the genuine needs of the exporters of gold jewellery.
RBI has now decided to extend this restriction to all nominated agencies/ premier / star trading houses who have been permitted by Government of India to import gold. Accordingly, any import of gold on consignment basis by both nominated agencies and banks shall now be permissible only to meet the needs of exporters of gold jewellery.
This has come into effect yesterday.
Huge gold import is a serious concern for the Finance Managers of the Government of India. Yesterday Commerce Secretary SR Rao said, "Trade deficit is of concern to the government. But this is a step in which RBI, Finance Ministry and Commerce Ministry are involved. So, we are consulting."
The Financial Stability and Development Council (FSDC) chaired by Finance Minister Chidambaram and attended by Secretaries of all Fiscal Departments and the RBI Governor met on Monday and discussed the issue. A PIB Press Release stated, "The Council noted with concern the significant increase in gold imports in recent months and deliberated on the issues involved in this regard."
Whatever the Nation's Financial Wizards do, the fact remains that gold imports are zooming.