The Government is planning to impose some curbs on its inward shipment to prevent current account deficit (CAD) from going out of hand.
"Things are being worked out by the Finance Ministry and some announcements (restrictions) may come in a day or two," a source said.
Gold import surged almost four times to $4.17 billion in October from $1.09 billion in the same month a year ago. In value terms, gold imports have touched 150 tonnes in October, as against 24 tonnes during the same period a year ago.
The high imports have pushed up the country's trade deficit to $13.35 billion as against $10.59 billion in October 2013.
last week, the government held a meeting to discuss ways to curb the rising inward shipment of the precious metal.
The Reserve Bank of India in August last year had imposed severe restrictions on gold imports and raised import duty on the precious metal to 10 per cent to check burgeoning current account deficit and sliding rupee.
The steps by the central government though helped lower gold imports substantially, also increased instances of smuggling.
In May, the previous UPA government eased certain rules and allowed private agencies to import gold under 80:20 scheme. This facility was available to select banks only and other entities were barred from importing the metal.