“I think the RBI has told banks not to sell gold coins,” the finance minister P Chidambaram told a news agency. Well, gold sales from banks are small and will not help in reducing gold imports or lowering CAD. However, consumers will benefit from not buying gold from banks

Moneylife Digital Team

There is a new twist to the story of banks selling gold coins. According to a Reuters report, finance minister P Chidambaram said, “I think the Reserve Bank of India (RBI) has advised banks that they should not sell gold coins”. Earlier, the RBI had refused to ban sale of gold coins by banks, citing that it wants to encourage ‘genuine’ investment in the commodity. While the FM is trying to contain gold imports in order to rein in current account deficit, from our perspective, stopping banks from selling gold coins is in the interest of the customer.

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