Gold coins kept for sale in the Banks are no more to be seen thanks to the RBI rule. In order to curb the import of Gold with an average of 152 tons per month during April and May, the RBI is asked to stop the Banks from selling gold coins. The gold import paved way to $15 million out go from the Country.
This measure is in addition to the Import Duty raised by the Finance Minister Chidambaram yesterday from 6% to 8%.
The idea in stopping the gold coin sale in the Banks is to reduce the enthusiasm of the customers to invest gold. More the investments in the gold more will be the imports naturally.
More over a drop in the gold rates on international market is an added loss after heavy imports of the yellow metal.
Banks are also asked to reduce advances against gold to discourage gold transactions. The marriage season and Akshaya Tritiya must have contributed to the swollen gold imports.