PAN card must for high-value gold purchases: RBI panel
- Elections LIVE: Muthalik shown the door by BJP hours after his appointment
- France has images of possible jet debris: Malaysia
- Sharad Pawar encourages party workers to vote twice in Lok Sabha polls
- Thane shocker: 24-year-old woman brutalised for refusing to enter flesh-trade
- India vs West Indies Live Cricket Score: After losing Dhawan early, India cruise in modest chase
Seeking to check demand of gold, a RBI committee today proposed a slew of measures like mandatory quoting of PAN card numbers for high-value purchases, restriction on gold loans and check on NBFC branches dealing with gold loans.
The Reserve Bank committee also suggested cheque payment for gold purchase beyond a threshold, introduction of other savings products to discourage investment in physical gold, prohibition of bank finance for buying gold and revival of the two-decade old proposal to set up a Bullion Corporation.
"There is a need to moderate the demand for gold imports considering its impact on the current account deficit," it said, adding that RBI may impose limits on volume and value of gold import by banks under "extreme situation".
Currently, banks account for about 60 per cent of the total gold import.
It suggested that NBFCs may obtain a copy of PAN card in all the loan proposals exceeding Rs 5 lakh per borrower to strengthen mechanism of KYC. Currently, PAN card is mandatory for jewellery purchases beyond Rs 5 lakh.
The committee underlined the need for continuous monitoring of rapid growth of assets, borrowings and branch network of gold loan NBFCs, while making a case for reviewing fund raising by them.
The recommendations include making use of idle gold reserves, which is about 20,000 tonnes, by setting up a gold bank and using the reserves of exchange-traded funds to productive use, but said there was no case for granting gold loan NBFCs a status at par with banks.
Giving its rationale for setting up a gold bank, the report said, "the proposed gold bank may be given powers to import, export, trade, lend and borrow gold and deal in gold derivatives."
Headed by RBI official K U B Rao, the committee suggested three-pronged strategy – demand reduction, supply management and monetisation of gold stocks – to deal with the rising gold import which has widened Current Account Deficit (CAD).
- Mamata slams Cong, BJP for passing Telangana Bill
- Mollah calls for Muslim-Dalit ‘Maha Jot’ to defeat Left, TMC
- Didi releases party manifestos, reflects ‘national ambition’
- Rs 700-crore hawala racket busted, Surat trader’s home, office raided
- Just a click away, one stop data on over 10 lakh criminals
- The age of individualism