RBI launches study on banks active in selling gold coins

To check possible systemic risks and plug loopholes, the Reserve Bank of India (RBI) on Monday said it is conducting a study on banks that actively sell gold coins or wealth management products.

"RBI has undertaken a thematic study in respect of banks that are active in selling gold coins or wealth management products to examine whether there are systemic issues and to plug deficiencies and legal loop-holes, if any," the central bank said in a statement.

Seeking to check demand of gold, a RBI Working Group had last month proposed a slew of measures like mandatory quoting of PAN numbers for high-value purchases, restriction on gold loans and check on NBFC branches dealing with gold loans.

Besides, it had suggested limits on imports of gold by banks and other government agencies like MMTC and STC, which account for about 56 per cent of the total import of the precious metal .

Gold imports remained a major concern for the regulators and the government as the inbound shipment increased in recent years and were valued at $42 billion in the April-January period of the current fiscal.

Gold imports for entire 2011-12 fiscal was $56.3 billion.

The rising gold import is putting pressure on the Current Account Deficit (CAD), which had touched a record high of 5.4 per cent in the July-September period.

With PTI inputs