Gold Imports by India Seen Falling as Central Bank Widens Curbs

India, the world’s biggest consumer of gold, widened curbs on imports to narrow a record current-account deficit after shipments surged in the past two months. The rupee climbed.

The restrictions on overseas purchases by banks on a consignment basis will be expanded to include state-run trading companies and others authorized to directly import gold, the Reserve Bank of India said in a notification on its website. The central bank also tightened financing norms for inbound shipments. The restrictions come after Finance Minister Palaniappan Chidambaram yesterday said the country can’t afford high levels of imports and policies will be reviewed if needed.