Until mid-May, bullion dealers could place gold import orders with a designated bank by paying a margin upfront and the rest on delivery, but a new rule stipulates they pay the entire amount before importing.

WSJ: India May Consider More Steps to Curb Gold Imports

Mohit Kamboj, President of the Bombay Bullion Association says he does not think this hike in gold import duty will affect a consumers appetite for gold, even if it means a gold bracelet may cost a little bit more.

CNN: India spent $56 billion for their gold?

Last month, just before the festivities began, the Indian government lent them some sheen by freeing the import of gold for domestic sale.

ECONOMIST: India: Fool��s gold? | The