Banks in India are not banned from selling gold coins: Finance Ministry

MUMBAI (Scrap Monster) : The Finance Ministry in a written reply addressed to the lower house of the Indian Parliament has clarified that the government has never banned gold coin sales by banks in the country. However, to limit gold imports into the country, the Reserve Bank of India (RBI) in August this year had imposed ban on gold coin and medallion imports.

 

In fact, the RBI had advised banks against selling gold coins to retail customers. In an attempt to help government reduce the Current Account Deficit (CAD), the All India Gems and Jewellery Trade Federation (GJF) had asked its members to suspend sale of gold coins and bars. According to statistics, the total sale of gold bars and coins accounted for almost 35% of the total gold imports by the country in 2012.

 

The gold coin sales witnessed drastic fall during the four-month period from July to October. Although physical sales dropped to nearly zero, the online sales had been so robust that one gold coin was sold online in every four minutes on Dhanteras day, according to e-commerce giant e-Bay.

 

Towards end-November, GJF allowed its members to sell gold coins of smaller denominations. The relaxation of the self-imposed ban saw coins of 2 gram, 3 gram and 5 gram flocking at jewellery outlets.

 

In was in the midst of renewed coin sales by jewellers that the Deputy Minister of Finance Namo Narain Meena clarified the government’s standpoint on the matter. According to him, the government has not officially put any ban on gold coin sales by jewellers or banks.