The Minister of State for Finance Namo Narain Meena today saidthe main reasons for depreciation of rupee are due to supply-demand imbalance in the domestic foreign exchange market. In a written reply in the Lok Sabha, Mr. Meena said the imbalance is mainly due to widening of the Current Account Deficit, CAD, slow down in Foreign Institutional Investment inflows and heightened risk aversion due to the Euro Zone debt crisis. The minister said to lower the impact of Gold imports on current account deficit under balance of payment, the government had proposed in the budget to increase basic custom duty on standard gold bars,gold coins of purity exceeding 99.5 per cent and platinum from two per cent to four per cent and on non-standard gold from five per cent to ten per cent. The minister also said that, further the Reserve Bank of India has taken certain prudential measures in respect of Non-Banking Financing Companies predominantly engaged in lending against collateral of gold jewellery to restrict the loans against gold.Namo Narain Meena today saidthe main reasons for depreciation of rupee are due to supply-demand imbalance in the domestic foreign exchange market. In a written reply in the Lok Sabha, Mr. Meena said the imbalance is mainly due to widening of the Current Account Deficit, CAD, slow down in Foreign Institutional Investment inflows and heightened risk aversion due to the Euro Zone debt crisis. The minister said to lower the impact of Gold imports on current account deficit under balance of payment, the government had proposed in the budget to increase basic custom duty on standard gold bars,gold coins of purity exceeding 99.5 per cent and platinum from two per cent to four per cent and on non-standard gold from five per cent to ten per cent. The minister also said that, further the Reserve Bank of India has taken certain prudential measures in respect of Non-Banking Financing Companies predominantly engaged in lending against collateral of gold jewellery to restrict the loans against gold.