New Delhi: Import of the precious yellow metal will not be easy anymore as the government is going to regulate the gold imports in the country soon.

After the Finance Ministry’s stringent stance on gold imports by raising the customs duty from 2 percent to 4 percent in the Union Budget 2012, the Reserve Bank of India (RBI) has suggested several measures, including, to cut down the gold imports in the country.

As per the sources, the Central Bank has directed the banks, Special Economic Zones (SEZs) and other major importers of gold to submit a detailed report on amount of the precious yellow metal imported and money spent on it every month and in every six months.

The new measure will help the government to have an accurate record of gold deals through different sources in a year.

Is India vulnerable to look into blackmoney?

Experts consider that the high rate of the outflow of foreign exchange reserve and fears of circulation of blackmoney through gold imports are the major reasons behind the government’s stringent move.

The country is currently facing huge decline in the inflow of foreign exchanges. In such a situation, outflow of foreign currencies is not an advisable deal on the context of Indian economy.

Another crucial reason behind the government’s move is the high risk of use of blackmoney in the imports of gold. Experts consider import of the yellow metal as one of the easy methods to convert unaccounted money into white money.

Besides other factors like investments on gold fails to make any positive contribution in the national economy and the increasing rates of gold in the global market amid high demands in India are playing a distinguishable role behind the government’s move in restricting the pace of gold imports.

The glitter of gold is taking away the shine of the country’s economy as money spent on gold is mostly wasted because it's only hoarded and simultaneously excluded from the financial inter-mediation system.

Last year, USD 46 billion of gold was imported in the country.

The gold imported during January-March 2011 was 283 tonnes and a total of 969 tonnes was imported in the same period in 2011, according to World Gold Council. 70 percent of the imports were used in the jewellery market.

India is the world's largest importer of the precious yellow metal.