...........Raising the matter during Zero Hour, K N Balagopal said the Reserve Bank of India had reportedly sent a letter to temple boards in Kerala seeking gold reserves in state's temples. He said RBI's move proves that the government has become a "pauper" and if they are planning to take over the gold, the antique value of the precious metals in the state's temples should be calculated. When he raised the issue, M Venkaiah Naidu (BJP) said such a move was not acceptable.........
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
1 comment:
It is unfortunate that legislators raise ‘doubts’ about tracking domestic gold stock without doing their own home work. It is in the national interest to have a fair idea of country’s domestic resources including gold, wherever they are located. MPs were vociferous about ‘funds abroad’. Is it not fair for the GOI/RBI have an idea about the domestic stock of gold?
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. A ‘Gold Regulatory Authority’ with legislative mandate, should keep a record of gold stock with individuals and organisations, beyond a pre-decided threshold level. There should be arrangements for reporting use, further accumulation and disposal of such stocks.
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 and insitutions 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. 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.
The policy should look at a strategy that will encourage transparency in transactions, elimination of wastages, standardization of valuation norms and facilities for gradually converting even the existing stock of gold with individuals and institutions to conform to internationally acceptable standards.
Post a Comment