RBI bars financing of gold purchases
Nov 20 2012 , Mumbai
"This won't impact gold trade as only 1 percent of traders used to depend on this form of financing," said Kumar Jain, vice chairman of Mumbai Jewellers Association, which groups 15,000 jewellers.
Industry officials said traders hypothecate the gold stocks with the banks to finance their working capital requirements.
Gold imports into India rose 9 percent to 223 tonnes in the September quarter, after a decline of more than 50 percent in the first half to June as doubling of import duty and record high prices dented sales.