Tackle Inflation

RBI Deputy Governor Subir Gokarn’s announcement that the central bank is considering allowing alternative ‘gold-like’ instruments must be seen in the light of two factors. One, our failure to quell the growing appetite for gold and, two, the threat that rising gold imports pose to an already precarious balance of payments position. As the country’s monetary authority and banking sector regulator, the RBI is understandably keen to dissuade people from buying gold........ 

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