A gradual weakening of the rupee, however, may add to inflationary pressures.
Rbi cut rates for teh third time to ease economic situation.
RBI will cut rates in its next policy announcement on June 2.
Gold demand will go up in the second half of this year.
Traders believe the RBI will step in more strongly, if the rupee starts falling towards 65
Global gold prices held below $1,200 an ounce this week.
The convertibility is RBI Governor's 'next big ambitious goal'.
Concern would kick in if imports stay at or over 100 tonnes a month.
Key to Modi's plan will be the interest rates offered for gold deposits.
The revision was announced before Indian markets opened on Thursday.
Lenders fret over stubbornly weak credit growth and still high funding costs.
Prices of buffaloes and cattle have fallen by 20-30%.
India builds up record FX after Fed hints rate hike in future.
Reserve Bank of India (RBI) Governor Raghuram Rajan's decision to cut rates last week surprised even top officials.
The effect of the beef ban has yet to show up in prices.
Buying had been muted in the past few weeks.
India is Asia's third-best performing equity market.
Hindu nationalists in India have stepped up attacks on the country's beef industry, seizing trucks with cattle bound for abattoirs.
Only three of India's 45 commercial banks have cut base lending rates since the Reserve Bank of India's surprise easing this month, hurting the government's drive to lift business investment.
Infrastructure bonds were launched by the RBI last year in a bid to help the government fulfill its plan to provide affordable housing to all by 2022
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