It is time to think of setting up of a gold bank under RBI.The idle gold lying in the economy can be mobilised by this gold bank and the money thus generated can be treated as Deposits.These deposits with a long term maturity can be used for investments for developing infrastructure which is very badly needed to support the sagging economy.Purchase of gold and Jewellery are by and large by black money holders and this can be easily tracked if the purchases are made against cheque or card payment with details of PAN numbers.The tendency to sell gold against hard cash without sales and service tax needs to be completely stopped to reduce the prices of gold and investments in gold. The banks should also offer a better rate of interest on deposits to take care of high level of inflation and at the same time diversion of funds to gold purchases. The IT return should call for information on Gold holdings atleast by High net worth individuals.The need to stop investments in Gold is urgent.
Dr.T.V.Gopalakrishnan
(This appeared in Business Line dated 3/1/2013)
Dr.T.V.Gopalakrishnan
(This appeared in Business Line dated 3/1/2013)
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