India to consider gold import restrictions in extreme conditions

MUMBAI - India's central bank said it would consider imposing value and quantity restrictions on gold imports by banks, which account for 60 per cent of India's imports of the yellow metal, under extreme conditions, as the world's biggest consumer of gold battles a record high current account deficit.

The Reserve Bank of India said on Wednesday it would also consider introducing gold-linked financial instruments to divert savings of inflation-wary Indians from gold bars and coins into bonds.

The central bank will also consider setting up a gold bank to monetise about 20,000 tonnes of idle stocks lying in vaults, it said in a report on issues related to gold imports in India.