The Reserve Bank of India said that authorized gold importers, which include banks and gold-trading agencies like MMTC Ltd., can now sell gold only to jewelers or bullion dealers who supply gold for jewelry business.
This step will restrict the supply of gold in the domestic market, according to Pankaj Parekh, vice chairman of the Gems and Jewellery Export Promotion Council of India.
The gold importing agencies will also have to ensure that 20% of every lot of gold imported is used only for purposes of export, the RBI said in its notification.
India's current-account deficit for the financial year ended March 31 stood at $87.8 billion, or 4.8% of India's gross domestic product, versus $78.2 billion, or 4.2% of GDP, in the previous year, according to RBI data.
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