The Reserve Bank of India (RBI) on Monday said it is in discussions with the government to curb gold imports which have seen a sharp surge in the recent months putting pressure on the current account deficit (CAD).
Gold import surged almost four times to USD 4.17 billion in October from USD 1.09 billion same month a year ago.
“With the surge in gold import, which has been witnessed, it warranted a relook. Discussions are still going on between the Reserve Bank of India and the Government of India. Once we know what the discussions are, further view will be taken,” RBI Deputy Governor S.S. Mundra said.
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The RBI in August 2013 had imposed severe restrictions on gold imports and raised import duty to 10 per cent in order to check burgeoning current account deficit and sliding rupee.