Gold import curbs eased

The government on Friday removed restrictions on gold imports. It scrapped the controversial 80:20 scheme amid allegation of misuse by companies.The UPA government had eased some of the curbs and allowed private agencies to import gold under the scheme that mandated traders to export 20% of all gold imported while retaining 80% for domestic use.The move is expected to cut smuggling and raise legal shipments into
the country. RBI statement said, "It has been decided by the Government of India to withdraw the 20:80 scheme and restrictions placed on import of gold. Accordingly, all instructions issued about the scheme from time to time... stand withdrawn with immediate effect." Sources said the move to scrap the scheme was taken as the measure was intended tackle the widening current account deficit last year. "Now that CAD is under control why continue with an emergency measure," a source said, adding that the measure had led to smuggling.