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India Central Bank Plan Seeks to Cut Gold Imports
Oct 25, 2015 5:18 AM
By Rapaport News
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RAPAPORT... The Reserve Bank of India has announced a set of guidelines governing the gold monetization scheme which is expected to reduce the approximately 900 tonnes of the metal imported annually, according to information posted on the Gem & Jewellery Export Promotion Council (GJEPC) website.
The government wants to make available some part of the country’s idle gold inventory (estimated at over 20,000 tonnes) held by individuals, trusts or mutual funds. High imports of gold was one of the factors that sent the current account deficit soaring a couple of years ago, according to the website.
Under the new central bank guidelines, any Indian resident can participate in the scheme by depositing a minimum amount of 30 gms of raw gold of 995 fineness or its equivalent in the form of plain gold jewelry.
Principal and interest of the deposit under the scheme will be denominated in gold. Interest will be calculated from the date of conversion of the gold deposited into tradeable bars, or 30 days after gold has been deposited at certified collection and testing centers.
Banks participating in the scheme may sell or lend the gold for minting of coins or to jewelers.
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Tags:
gold, precious metals, Rapaport News, Reserve Bank of India
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