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Letter to BS: Measures needed to make gold deposit schemes popular

Measures like starting facilities for refining and certification of standards, building public trust in such schemes and incentives with institutions and individuals are necessary

Business Standard 

Letter to BS: Measures needed to make gold deposit schemes popular

This refers to the report “joins peers to buy insurance” (June 17). While it is comforting to note that the is augmenting the component in India’s foreign exchange reserves, efforts to account and mainstream the country’s domestic stock are not moving fast. This should be done urgently as the measure will bring down the need to import gold which is a drain on our precious forex reserves.

According to media reports, recently the Guruvayur temple in decided to deposit 350 kg out of its gold stock with the State Bank of India; this deposit will earn 8.75 kg gold per annum as interest for the temple. Surprisingly, the gold will have to be transported all the way to for refining and standardising to be accepted as deposit by the SBI. Earlier also, the temple had deposited gold with the bank. Other temples like and Siddhivinayak (Mumbai) have also deposited part of their gold stocks with banks. One single deposit of earns per annum interest equivalent to the value of 80 kg gold.

To make gold deposit schemes popular, measures like starting facilities for refining and certification of standards, building public trust in such schemes and incentives for accounting and mainstreaming gold stocks beyond a threshold level with institutions and individuals will be necessary.

M G Warrier, Mumbai


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First Published: Mon, June 17 2019. 21:36 IST
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