Finance minister won’t ease gold rules.

New Delhi: Finance minister P. Chidambaram on Tuesday ruled out the possibility of lifting a ban on import of gold coins and medallions in view of the coming festival season. He asked the banks to strictly follow guidelines restricting import of the yellow metal.

“I have told banks to be very strict, at least the gold importing banks, to be very strict on gold imports. They have to scrupulously follow the RBI and government guidelines. No violations will be permitted,” said Chidambaram after meeting the chiefs of the PSU banks. There were reports saying that some entities may import gold coins for ‘shagun’ (auspicious gift) purposes.

“I am sorry to disappoint him. Import of gold coins and gold medallions is prohibited. Nobody can import gold coins and medallions,” said Chidambaram.

The government had put restrictions on gold imports and increased custom duties on it to reduce its import so as to bring down the current account deficit (CAD). The quantity of gold imported during 2012-13 was 845 MT valued at Rs 2, 45,862 crore.

However due to the steps taken by the government gold and silver imports fell by over 80 per cent to $0.8 billion in September. The finance minister informed that India has received over nine billion dollars from two foreign schemes, which were announced in September to attract foreign funds and help the country to bridge the widening CAD.

“Banks have taken advantage of RBI’s liberalisation of FCNRB and Tier I capital schemes. So far, under the two schemes put together, banks have brought in $ 9.6 billion. This is very encouraging,” said Chidambaram.

Finance minister also asked PSU banks to try to meet their targets for minority lending. He noted that there has been healthy growth in housing loans to individuals by PSU banks.
He said that there has been an increase of 42 per cent in the first quarter in housing loans and 61 per cent increase in the second quarter.

Source : deccanchronicle.com