India’s central bank plans more gold import curbs



AGENCE FRANCE PRESSE

Published — Thursday 7 February 2013

Last update 7 February 2013 12:34 am

| نسخة PDF Print News | A A

MUMBAI: India's central bank said yesterday it will consider more steps to restrict gold imports and help stem the country's widening current account deficit.
Gold purchases are one of the biggest contributors to the deficit in the current account, the broadest measure of trade. It hit a record $ 22.3 billion, or 5.4 percent of GDP, in the July-September quarter, as imports outpaced exports.
"The need to contain the demand for gold imports is critical in a country with insatiable demand for the yellow metal," a Reserve Bank of India (RBI) report said yesterday.
"Given the precarious global economic situation and its impact on the Indian exports, there is a clear need to reduce the current account deficit considerably."
India imports about 900 tonnes of gold each year, mainly through designated banks. The government last month increased the import duty on gold to six percent from four percent earlier.
The RBI said yesterday it would consider introducing gold-linked financial instruments to divert savings of people from gold bars and coins into bonds.
India is the world's biggest consumer of gold, with purchases an essential part of religious festivals and weddings.
Many Indians — especially in rural areas where there are few banks — purchase gold in the form of jewelry, bars and coins as a hedge against inflation.
"Creation of an alternative asset class that may provide returns comparable to that in physical gold with similar flexibility is important," the RBI said.
The bank said it may consider setting up a "Gold Bank" or Bullion Corporation of India, which can pool the large amounts of scrap gold in India to reduce imports of the precious metal.

What's happening around Saudi Arabia

JEDDAH: A small fire broke out on the roof of the Grand Mosque on Monday morning, causing minor injuries to five people, including members of the Civil Defense, one security officer and three workers. The fire broke out at about 2 a.m. and covered an...
RIYADH: Mosques across the Kingdom will conduct midnight prayers (Qiyam Al-Layl) at 1.a.m beginning Tuesday to mark the beginning of the last 10 days of Ramadan.“The special prayers are conducted during the last 10 days of the holy month from 1 a.m.,...
JEDDAH: The director general of the Saudi Industrial Property Authority, Saleh Rasheed, has said that Sadeer Industrial City, which is regarded as one of the largest industrial cities in the Kingdom, possesses great capabilities that sets it apart as...
DAMMAM: Cheap and out of date cosmetics are causing serious health problems in the Kingdom, including skin diseases, hair loss and cancer, local doctors say.These products are often manufactured incorrectly or contain harmful fats, the doctors were q...
JEDDAH: Several young Saudis have started filming Jeddah’s historic district using cameras mounted on drones to gather professional 3D footage that can be used to build models and create virtual tours.Bandar Al-Mutlaq, owner of the Arab Foundation, w...
RIYADH: The Saudi capital is fully geared for this year’s Eid Al-Fitr celebrations that include an exciting bouquet of entertainment, heritage, sports, artistic and theatrical events.The annual Muslim festivities being organized here by the Riyadh mu...
JEDDAH: As part of its growing supervisory and investigative status, Riyadh Health Department’s forensics center examined 632 cases over the past eight months involving suspected murder, rape and abuse of women and children.Khaled bin Muhammad Hassan...
RIYADH: The Syrian Expatriates Medical Association (SEMA) expressed its thanks on Monday to Saudi organizations and individuals for donating to the campaign to help Syrians affected by the ongoing conflict.SEMA has 1,300 members in Syria and other co...
RIYADH: Inclusion of the Hail rock art in the UNESCO World Heritage List is proof of the Kingdom’s status and cultural profoundness, said the Saudi Commission for Tourism and National Heritage (SCTNH) on Monday.Reacting to the announcement of the fou...
JEDDAH: The Yemeni community has asked the Saudi government to extend the rectification process, which ends Tuesday, claiming that there are many thousands still seeking to get proper identification documents to qualify for work visas in the Kingdom....
JEDDAH: The Ministry of Municipal and Rural Affairs has set up 343 electoral constituencies for the Dec. 12 municipal council elections.This was done on the orders of Abdullatif Al-Sheikh, the minister and head of the General Committee for the Munici...
JEDDAH: Efforts are under way to electronically handle all Haj-related works to achieve speed and accuracy, as well as reduce costs an bring in transparency, Haj Minister Bandar Al-Hajjar has said.Speaking at a workshop in Jeddah on Sunday, Hajjar sa...
JEDDAH: The Board of Trustees of the King Abdullah International Foundation for Charity and Humanitarian Works on Sunday held its third meeting in Jeddah in the presence of Prince Khaled bin Abdullah, the board chairman, and Prince Miteb bin Abdullah...
RIYADH: The Ministry of Health has announced that six people were infected with the Middle East Respiratory Syndrome Coronavirus (MERS-CoV) in the period from June 28 to July 6.The ministry has now recorded 1,045 cases of MERS since June 2012, with 5...
ALKHOBAR: Patient visitations play an important role in the healing process, provided the well-wishers adopt the right approach by speaking and acting in a manner that the sick person’s morale is lifted. However, any wrong move by the visitor may aff...

Stay Connected

Facebook