RBI disallows banks to finance purchase of gold

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts
    RBI disallows banks to finance purchase of gold
    The Reserve Bank of India on Monday said that banks are not allowed to finance purchase of gold in any form,  including primary gold, gold bullion, gold etf.
     

    The RBI adding further said that no advances should be granted by banks against gold bullion to dealers/traders in gold if, in their assessment, such advances are likely to be utilised for purposes of financing gold purchase at auctions and/or speculative holding of stocks and bullion.

    The significant rise in imports of gold in recent years is a cause for concern as direct bank financing for purchase of gold in any form viz.,bullion/primary gold/jewellery/gold coin etc. which could lead to fuelling of demand for gold.

    Accordingly, it is advised that no advances should be granted by banks for purchase of gold in any form, including primary gold, gold bullion, gold jewellery, gold coins, units of gold Exchange Traded Funds (ETF) and units of gold Mutual Funds.

    However, banks can provide finance for genuine working capital requirements of jewellers, further added.

    GoodReturns.in

    Read more about: gold rbi
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more