In keeping with the Government's objective of curbing gold imports, Reliance Capital today announced suspension of gold sales across all its businesses.
The diversified financial services major said that sale of gold in physical form (including supply of gold coins for sale through India Post) and also as an investment product has been suspended with immediate effect.
Also, Reliance Capital's commercial finance division has decided to suspend financing against gold as a security.
Reliance Capital Asset Management will henceforth not take in new subscriptions in Reliance Gold Savings Fund. But existing SIP investors will not be affected by this decision.
The Government had recently made public statements that increased gold imports were hurting the country's economic interests.
"Reliance Capital is committed to support all policy objectives of the Government and the RBI," Sam Ghosh, Chief Executive Officer, Reliance Capital, said in a statement issued soon after the decision to suspend sale of gold across all its businesses.
He expressed hope all stakeholders across business, trade and industry will act in a responsible manner to minimise gold imports, which has adversely impacted the current account deficit situation.