in physical gold with similar flexibility is important," it said.
Gold import is the second major contributor to the CAD after oil. Gold import in April-December stood at USD 38 billion. In 2011-12 fiscal it was USD 56 billion.
The CAD, which is the difference between the inflow and outflow of foreign exchange, widened to a record high of 5.4 per cent of GDP in the July-September quarter.
"Large gold imports, if unchecked, can potentially threaten the external stability and, therefore, there is an unambiguous need to moderate them," RBI report said.
To contain gold import, the government last month hiked import duty on gold to 6 per cent, from 4 per cent. It also linked gold Exchange Traded Fund (ETF) with bank gold deposit scheme to enable MFs to unlock their physical gold and invest in gold-linked schemes offered by banks.
The panel further said there is a "need to reduce gold loan NBFCs' heavy borrowings from banks so as to reduce their interconnectedness with formal financial system gradually".
"There is a need to thoroughly review the operational practices followed by gold loan NBFCs," the panel said adding there are concerns on some gold loan NBFCs have been raising public deposits "surreptitiously" through incorporated bodies.
It also suggested that banks may expand their gold jewellery loan portfolio to monetise the stock of idle gold and there should not be any limit on advances against gold jewellery and gold coins by individuals.