Gold & Silver

Gold imports will not go up due to RBI measures: Traders

PTI New Delhi | Updated on February 19, 2015 Published on February 19, 2015

Gold imports in India, the world’s largest consumer, will not increase in the coming months following the RBI easing curbs on inward shipments of gold coins and medallions, bullion traders and jewellers said.

However, the RBI’s clarification banks can provide gold on loan to jewellers will reduce working capital obligations of the former, they added.

“The RBI has not clarified anything that will encourage imports in the coming months. There will not be any increase in the imports,” All India Gems and Jewellery Trade Federation Director Bachhraj Bamalwa told PTI.

Imports can increase if the government brings down import duty from the existing 10 per cent level, he added.

Echoing views, PC Jeweller Managing Director Balram Garg said, “There will not be any increase in imports but jewellers will be benefited as their working capital obligation will reduce.”

Jewellers were made to pay the full amount for buying gold since mid—2013. Now, jewellers will get 180—day credit from banks for buying gold.

A senior official from gold miner MMTC—Pamp also said the share of unofficial imports could come down marginally with the recent measures but not the overall imports.

Yesterday, the Reserve Bank lifted ban on imports of gold coins and medallions by banks and trading houses and also allowed banks to provide gold on loan to jewellers.

Published on February 19, 2015
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