ibnlive » Business

Jun 06, 2013 at 05:10pm IST

Don't advise clients to invest in gold, Chidambaram tells banks

Mumbai: The Reserve Bank of India has advised banks against selling gold coins to retail customers, Finance Minister P Chidambaram said on Thursday, a day after he raised gold import duty to try to ease pressure on India's bloated current account deficit.

"I think the Reserve Bank has advised banks that they should not sell gold coins," said Chidambaram, while speaking at an event in Mumbai. He also urged banks to advise their customers not to invest in gold.

Gold imports by India, the world's biggest buyer of bullion, surged to 162 tonnes in May - more than twice the monthly average in the record year of 2011.

The Finance Minister's advice came a day after he raised gold import duty to try to ease pressure on India's bloated current account deficit.

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