RBI mulls for allowing banks to buy back gold coins from customers
By Vaibhav Aggarwal
Feb 7, 2013
Print    Email    RSS   

The panel formed by Reserve Bank of India to suggest ways on how to control gold demand has made several suggestions on the matter, ranging from periodical assessment of the import of the yellow metal to permitting banks to buy gold coins back from public and imposing export targets on gold importers.

The report also advises on related matters such as import of the yellow metal, gold loans offered by non-banking finance companies (NBFCs) and suggests that the fiscal measures need to be revised to lower the rate of gold imports in the country.

Recently, in order to manage demand for the yellow metal, government had increased customs duty on gold from the earlier 4 percent to 6 percent. One of the suggestions says that the import duties levied on gold imports should be revisited at equal intervals to discourage imports of gold as warranted by the developing Balance of Payments (BoP) conditions prevailing in the economy.

In the report, the panel says, "While sharp increase in import duties is counterproductive, a well-modulated increase in import duty may reduce the demand."  

Some of its other suggestions include increasing import duties as well.

(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Carnival of Indian Personal Finance Blogs # 7
Carnival of Indian Personal Finance Blogs #4
Carnival of Indian Personal Finance Blogs #1
This is how a bank lends money
How to decide on a loan for business?

HOTEL: CaℒL Giℛℒs In Kharar 09855660911...
Model Escoℛts Service In Pune 8888IOO484 Caℓℓ...
What is the outstanding Amount for my personal loan

LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive