India's gold imports could pick up in the next few months after slumping 81 percent in June as falling prices spur buying, a government source said, adding to New Delhi's anxiety over a record-low rupee and a wide current account deficit.
India sharpened measures to curb imports of the yellow metal by hiking the import duty and restricting consignment imports, after shipments jumped to more than 300 tonnes in April and May.
The rupee fell to an all-time low of 61.21 on Monday, sparking speculation about potential measures from the Reserve Bank of India, including providing a special window for oil companies to buy dollars.
The Reserve Bank of India has cut repo rates, the rate at which it lends money to banks, by 75 basis points since January this year, but most banks have not lowered lending rates.
It may widen because of money outflows.
India's current account deficit hit a record high 4.8 per cent of gross domestic product in the fiscal year that ended in March
Rupee, he said, is not in shambles and "we should not be overtly pessimistic".
India has been struggling to control the current account deficit that hit an all-time high of 6.7 percent of GDP in the December quarter.
Two senior ministry officials, who declined to be named, said the aim was to attract more capital flows from wealth funds in West Asian countries.
Heightened volatility makes the debt rollovers difficult.
The RBI said it had not found initial evidence of money laundering against the three banks.
Earlier, Finance Minister P Chidambaram had said he thought the figure was 262 tonnes.
Overall, merchandise imports rose 10.9 per cent to $41.95 billion.
The majority view remains for the central bank to leave the cash reserve ratio unchanged at 4 per cent.
His officials are working on a series of steps to attract at least $20 billion in new investment to fund the deficit without depleting India's $300 billion in forex reserves.
Will help to reduce current account deficit and restore growth.
Cabinet will take a decision on a conciliation offer from Vodafone.
India will soon allow corporate houses to open banks despite misgivings within the RBI.
India's policy to subsidise retail prices of fuels such as diesel, which accounts for about 40 per cent of refined fuel consumption, is a major drain on the budget.
The minimum threshold to come under GAAR will be Rs 3 crore.
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