The Reverse Bank of India made another move to restrict gold imports. India restricts giving loans to customers to buy more 50 grams of gold per customer.
The RBI limited the loans to any customer buying gold jewelry of coins to the value of 50 grams. They also notified banks while granting advance against security of special minted to coins to limit their sales to 50 grams per customer.
This move came shortly after limiting commercial banks from importing gold, and raising the gold import duties to 8% in six months.
The RBI is following the Indian Finance Minster directions to curb gold imports. The Indian government perceives that gold is major factor widening their balance-deficit.
The Indian government is trying to reduce gold imports more actively on the light of gold price declining this year, which might raise the demand on physical gold to records high. After April’s gold price dip, India reported to import around 152 tonnes of gold in just two months.
Other reports forecast the demand on gold in India would ease the rest of this year, as the religious and wedding seasons ended. The Indian populace, especially in rural areas, records high demand in these seasons.