DOMESTIC GOLD STOCK

January 16, 2016
Domestic gold stock*
This refers to J P Gupta’s article “Unlock All That Temple Gold, Devotees of India” (Economic Times, January 15). The suggestion to deploy nation’s idle wealth productively should be welcomed by all. In the past also, several suggestions for better management of domestic gold stock had come up and decades back, RBI had seriously pursued a proposal to set up a Gold Bank to function as an apex body for coordinating export/import and transactions in gold-based financial instruments.
Last budget (2015-16) announced some schemes for bringing idle gold into the mainstream and opportunities for public intending to invest their savings in gold. These schemes are now under implementation. As suggested in the article, temples and trusts which possess solid gold should be persuaded to invest at least part of their gold holdings with banks which will now earn interest also. Temples like Tirupati and Siddhivinayaka have already moved in this direction.
GOI should not further delay mapping of gold and jewellery stock beyond a threshold level by individuals, institutions and organisations including religious trusts.
M G WARRIER, Mumbai

*For a detailed analysis see Chapter III.2 Gold Management in the 2014 book "Banking, Reforms & Corruption: Development Issues in 21st Century India" By M G Warrier (Publisher: Sampark, Kolkatta)


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