Kerala temples' gold-inventory plan dropped: RBI - The Hindu

Kerala temples' gold-inventory plan dropped: RBI - The Hindu


The country cannot allow sentiments to impact policies for managing nationĂ¢€™s resources or regulating financial sector. Domestic gold stock need to be reformed and part of it put to productive use. If there is a political will, GOI should seriously go ahead with the following initiatives(the list is illustrative) which have already seen some beginning during the last one year: * Make a realistic estimate of surface gold stock in India. Individuals and institutions holding gold stock above a threshold level should report the quantum of gold held to a designated authority.

* Insist on standardisation of a reasonable portion of gold held by institutions. Infrastructure for such standardisation should precede.

* Encourage financial institutions to increase their gold portfolio. Organisations including religious institutions should be provided incentives to deposit gold with banks.

* Establish a National Registry to keep track of inflow, stock and outflow of gold in various forms.

from:  M G WARRIER
Posted on: Oct 18, 2013 at 09:23 IST

According to some estimates floating in the media India has a domestic gold stock of 20,000 tonnes. If any legal authority feels that there is a need to bring a small portion of it into productive use, the idea cannot be faulted based on sentiments. It is in this context some moves are on the way for better management of gold in India. The RBI initiative to study the issues relating to gold imports and gold loans has to be seen in this perspective. If people or GOI feels that the study should be by any other agency, that should be examined.
M G Warrier, Mumbai



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