India should launch bullion banking to boost industry, suggests WGC

The market potential for bullion banking in India, according to the council, has an estimated value between $300 million and 500 million

Gold miners’ body World Gold Council (WGC) has recommended that the Indian government launch bullion banking by carving the niche bullion business out of the core banking system to bring in more transparency in business. The move might help unlock about $500 million in the value chain, it said.

As of now, banks import gold and lend as gold metal loans. So, bullion banking is confined to a handful of businesses. Going forward, when the government announces and implements a gold policy and introduces more reforms, including a spot exchange, banks’ role should expand to buying gold rather than only