RBI allows banks to sell gold coins made by MMTC

So far, gold coins were allowed to be sold only through about 25 MMTC centers in country

Reserve Bank of India (RBI) on Thursday allowed banks to sell gold coins manufactured by MMTC Ltd, through bank branches as the gold procured for making the coins are from the domestic market.

MMTC was authorised by the central government to manufacture these gold coins with Ashok Chakra embossed on it for the domestic market. The India Gold Coin sale scheme was announced on November 5 last year along with gold monetisation and sovereign gold bond schemes.

Today's relaxation allowing banks to sell gold coin will be significant because so far India gold coins were allowed to be sold only through MMTC centers which were hardly 25 in the country.

Banks cannot sell gold coins other than India Gold Coins manufactured by MMTC, because the restrictions put by the RBI on banks not sell gold coins continues. Only relaxation given to them is for selling India gold coins. Till first half of 2013, banks were very aggressively selling gold coins.

"MMTC has clarified to the Reserve Bank that the gold used for the IGC will be only that mobilised domestically under the existing Gold Deposit Scheme and Gold Monetisation Scheme," RBI said in its notification, paving the way for banks to use their branches for selling the coins.