Facing huge gold imports that is worsening India’s balance of payments, the government wants to curb gold buying. However, the RBI is pushing savers to buy gold from the banks. This is one of the worst options for everybody. While banks sell you gold at a premium the RBI does not permit banks to buy them back. You will have to sell them to jewellers and get a lower price!

Moneylife Digital Team

India is facing an adverse balance of payments mainly due to massive gold buying by Indians. While the government wants to curb gold imports, the Reserve Bank of India (RBI) has no intention to ban gold coin sales by banks. This is strange because buying gold from banks happens to be one of the most inefficient ways of buying gold. Banks charge higher rates than jewellers. However, unlike jewellers who do buy back the gold they sell, banks are not allowed to, as per RBI directive. This means that RBI wants you to buy high and sell low. Moreover, the RBI has allowed banks to easily sell the yellow metal. We visited websites of some of the top banks namely: Andhra Bank, ICICI Bank, Axis Bank, State Bank of India and HDFC Bank, and found that pretty much anyone can walk into a bank and buy gold, sometimes with no documentation required.

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