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Reliance Capital, a part of the Reliance Group, has decided to suspend sale of gold in physical form (including inter alia supply of gold coins for sale through India Post), and also as an investment product, across all its businesses and subsidiaries.
Company has became the first in discontinuing gold business be that sale of physical gold, gold saving scheme or financing against gold.
Strongly supports the government’s publicly stated objective of minimizing gold imports that are seriously hurting the country’s economic interests.
The Company In addition, Reliance Capital’s Commercial Finance Division has decided to suspend financing against gold as a security.
Further, Reliance Capital Asset Management (RCAM), a part of Reliance Capital, has decided to suspend new subscriptions in Reliance Gold Savings Fund. the Company said in a release that the, "'existing SIP investors will not be affected by this decision.'"
These decisions are subject to necessary regulatory approvals.
“Reliance Capital is committed to support all policy objectives of the government and the RBI. Our actions is helping the government to minimize gold imports that have placed an unbearable burden on the Current Account Deficit (CAD),” said Mr. Sam Ghosh, CEO, Reliance Capital.
Comany has over Rs 2,000 crore assets under the gold saving scheme and it is the largest distributor for gold coin sales through India Post. The company will henceforth not finance against the gold as a security.
