Buying gold gets tougher as RBI bans EMI facilities on purchases of yellow metal

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RBI bans EMI facilities on purchases of yellow metal
The Reserve Bank of India (RBI0 is leaving no stone unturned to discourage gold buyers in the country as it has now banned conversion of gold purchases at jewellery retailers into equated monthly instalments (EMIs) with the help of credit cards.

The central bank has also asked banks to stop accepting credit cards for purchasing of gold at their branches. The decision is going to affect many large banks who are aggressively promoting credit card business, offering to convert any purchase of over Rs 10,000 into EMIs.

Media report quoted the retail head of a foreign bank as saying "The central bank does not want banks to encourage gold buy. This has been communicated to us in several interactions. So, we have stopped offering the EMI facility on gold purchases."

The move comes after RBI asked banks not to lend against gold coins. On the other hand, government has raised the import duty several times to curb imports of gold which is widening the country's current account deficit.

Read more about: gold
Story first published: Monday, July 1, 2013, 9:20 [IST]
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