Need to resurrect concept of gold bank to monetise physical gold: Former RBI deputy R Gandhi

Mumbi-India (Dec 1)  There is a need to establish a gold bank in the country to help monetise physical gold lying with people, Reserve Bank of India's former deputy governor R Gandhi said on Wednesday. He said the country needs to play along with the Indian psyche of the strong preference for physical gold and gold in the form of jewellery, if it wants to be successful in monetising gold for the betterment of the economy.

It is estimated that around 23,000-24,000 tonnes of gold lie with the households and religious institutions in India but it is not easy to change the psyche of the people, he added.

"It may be the time to resurrect the concept of a gold bank - a bank which will accept gold deposits that provides gold loans exclusively or predominantly," Gandhi said on Wednesday at a virtual event organised by digital lending fintech firm Rupeek on 'Tech Disruption meets Gold Monetisation'.

TheEconomicTimes