RBI Eases Gold Import Rules

The Reserve Bank of India has liberalised gold import rules with immediate effect, by allowing seven more trading houses to procure the precious metal in order to boost trade.

According to officials, the move could surge gold imports by India from its current levels.

In 2013, India imposed a record high duty of 10% on overseas purchase of gold, in order to check the ballooning trade deficit.

The decision to ease the restrictions allows more than 20 segments, including jewellers, bullion dealers, and bank and trade bodies, to import the precious metal.

Banks are now allowed to provide gold loans to domestic jewellery makers. This practice was stopped last year.

The new guidelines will also increase legal monthly imports by 10-15 tonnes from the current 20 tonnes.

According to an analyst, gold metal loans are of great significance as they are expected to release the cost pressures.

India's Prime Minister designate Narendra Modi has also indicated his willingness to ease the curbs.

The plan to ease the restrictions is ready for the new BJP government to take up.