The Reserve Bank of India (RBI) has bought 200 metric tonnes of gold from

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the International Monetary Fund for about $ 6.7 billion.

The IMF targets to sell about 403.3 metric tonnes of gold to shore up its finances so that it can lend money to the poorest countries at concessional rates.

"This transaction is an important step toward achieving the objectives of the IMF's limited gold sales programme, which are to help put the Fund's finances on a sound long-term footing and enable us to step up much-needed concessional lending to the poorest countries," MF Managing Director Dominique Strauss-Kahn said.

The transaction, which is still in the process of being settled, was carried out on a daily basis over a period of two weeks October 19-30. Each daily sale was conducted at a price set on the basis of market prices prevailing that day.

"The total sales proceeds are equivalent to USD 6.7 billion or SDR 4.2 billion," the IMF said.

As per IMF rule, all gold sales must be conducted at prices based on market prices, including direct sales to official holders as in the case of this transaction.

At its meeting on September 18, the IMF Executive Board had approved to sell 403.3 metric tonnes of gold, which is one-eighth of the Fund's total holding, to increase the its resources for lending to low-income countries under a strategy endorsed by the Board in July