The Reserve Bank of India squeezed gold buyers further on Thursday, ruling out any credit transactions for imports unless they were intended to make jewellery for export, as it looks to rein in a record current account deficit.
The RBI said the restrictions would also apply to imports of gold which do not have a fixed price.
"In other words (authorised dealers and banks) are required to ensure that credit in any form or name is not enabled for import of any form of gold," the bank said.
It added that imports of gold using loans could continue for lending to exporters of jewellery.
Indians, the world's biggest gold buyers of gold, imported record amounts in May, threatening to swell a record current account deficit.
With energy imports crucial to Asia's third-largest economy, the focus has been on curbing gold, the number two item in the import list.
Gold imports hit a record 162 tonnes in May as Indians swooped to take advantage of hefty price falls, rattling the government and the central bank which are keen to rein in a current account deficit which hit an all-time high of 4.8 percent in 2012/13.