This may force them to raise domestic jewellery prices to cover losses, experts said.
The RBI also specified that all gold importers would have to supply gold in any form only to jewellers or dealers supplying ornament manufacturers, with a view to stem investment in gold in order to bring down the country’s current account deficit (CAD) and strengthen a falling rupee.
“Consumers might have to pay more for gold products,” said Somasundaram PR, managing director, World Gold Council India.
Gold prices rose by Rs390 to cost Rs27,680 per 10 grams in the national capital on Monday.
Stemming foreign capital outflows have become critical for India, as the rupee has lost almost 15% of its value since May plunging to a record Rs61.21 to the dollar earlier this month. The CAD – the difference between dollar inflows and outflows – hit a high 4.8% of the gross domestic product in 2012-13.