Govt considering bullion bank to mobilise idle gold | Business Standard
Govt considering bullion bank to mobilise idle gold | Business Standard Online comments posted on August 31, 2013: It was reported in the media during July 2012 that, observing that gold imports are contributing substantially to India's current account deficit (CAD), an RBI panel was looking into the aspects of devising some alternative routes like bringing out the gold which already exists in the country. The panel was also to examine whether domestic stock of gold can be brought into the mainstream by devising appropriate financial instruments. People’s emotional attachment to gold in metal form will come down only if the government is able to infuse confidence about the effectiveness of ‘paper gold’ (someone corrected me recently, it should be ‘electronic gold’!) as a store of value with easy liquidity. Awareness should also be created about the loss involved in abuse of gold for show-off purposes like gold-plating of roofs, statues and flag-masts or even in frequent re-maki...