RBI chief: not to impose ban on gold coin sales by banks

PUNE, India (Reuters) - The Reserve Bank of India does not want to ban Indian banks from selling gold coins, in a bid to ensure genuine investment demand does not get throttled, Governor Duvvuri Subbarao said on Tuesday, even while the central bank continues to discourage speculative investments in gold.

On Monday, the RBI said on Monday banks would not be allowed to give loans against units of gold exchange-traded funds (ETFs) and gold mutual funds.

(Reporting by Shamik Paul; Editing by Anand Basu)