RBI vide circular not RBI/2013-14/187 A.P. (DIR Series) Circular No. 25 dt.August 14, 2013, addressed to
- All Category – I Authorised Dealer Banks
- All Scheduled Commercial Banks which are Authorised Dealers (ADs) in Foreign Exchange
- All Agencies nominated for import of gold
has clearly mentioned that Import of gold in the form of coins and medallions is now prohibited.
Over the last few years, many Banks in India, started to sell Gold in the forms of coins and medallions.
As India does not mine gold, the gold had to be imported. Over the years, the dollar outflow increased to meet the Indians appetite for gold coins. There was also a belief, that the gold coins were kept in lockers, and hence was non-consumption expenditure, which was not beneficial to the country.
Hence, to minimize the craze for gold coins, which in turn might reduce the demand for US Dollars, the import of Gold and Medallions has been prohibited.
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