Gold & Silver

Comprehensive gold policy likely to go for Cabinet approval soon

K. R. Srivats | | Updated on: Oct 10, 2019
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The upcoming policy likely to provide for gold spot exchanges, bullion banking

The much-awaited comprehensive gold policy will soon go to Union Cabinet for approval. The Finance Ministry is expected to in the next 15-20 days send the policy to Cabinet for approval, sources in Finance Ministry said.

This new policy is significant as it could pave the way for "bullion banking" (take the risk in bullion) and setting up of new infrastructure such as gold spot exchanges in the country. This will benefit consumers and small jewellers in particular.

Bullion Banking will enable consumers to do bullion-related transactions with banks with ease. Spot exchanges are expected to solve for liquidity in the market.

The formulation of a comprehensive gold policy will help exports. It may not have any impact on demand, but it could undoubtedly boost sentiment, sources said.

After NITI Aayog's report, the framing of the comprehensive gold policy was in the last lap and now this will soon move to the Cabinet.

Published on October 10, 2019

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