.....For banks, selling gold coins was a lucrative proposition, as they earned Rs 100-150 for every gm of gold sold. State Bank of India Chairman Pratip Chaudhuri said, “Banks took to gold coins because customers needed them. Private sector banks were doing brisk business. So, we thought we were losing out on an opportunity and viable business.” He added gold was taking away foreign exchange and some people were possibly holding gold as the nearest proposition to holding dollars.
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We should take a more serious look at the country’s gold stock and reduce our dependence on import of gold. Similarly domestic processing of gold (including minting of gold coins of internationally acceptable standard) should get attention from authorities. Vested commercial interests should not be allowed to prevail upon national interest.
Time is opportune for authorities to think in terms of dedicated professional institutions at regional/state level which will handle gold from a banking angle with an apex body equipped with linkages for import and export of gold and gold products with borrowing and lending capabilities. States like Kerala have successfully intervened in other similar sectors like chits/kuris and lotteries, which were also areas of exploitation by vested interests, whereby players in private sector had to fall in line and function with discipline and self-regulation.
Establishment of ‘Gold Corporations’ with state participation could also be debated. Such an institution can act as a depository where the pride gold possession of individuals now in bank lockers and the pledged gold can find a safe shelter, provided the purity could be ensured and the ‘Corporation’ is able to find resources and skill to deal in gold and money with the customers’ confidence.
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