The Reserve Bank on Wednesday said that it had eased gold import norms by allowing select trading houses, in addition to already permitted banks, to procure the precious metal to boost exports.
The Reserve Bank of India in July last year had imposed severe restrictions on gold imports in order to check burgeoning current account deficit and sliding rupee.
The central bank had tied imports with exports and prescribed a 20:80 formula. This facility was available to select banks only and other entities were barred from importing the metal.
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With the current account deficit now under control, investors are betting on the RBI and the government easing gold rates even further. This is likely to see jewellery stocks rallying even further in the coming days.