The Reserve Bank of India (RBI) is likely to bring some regulation to protect those people who save money with the jewellers in monthly saving schemes for buying gold.

Almost all jewellers in major cities such as Mumbai, Ahmedbad, Chennai, and Bangalore are virtually working like non-banking financial companies (NBFCs), without permission from the RBI. They have launched various gold saving schemes, encouraging the people to buy gold at the end of their saving term. In some instances, the jewellers have disappeared with the people’s savings.

“Now the RBI is looking at it and we expect it to bring some regulation in this regard,” said Mr Ajay Mitra, Managing Director, India and Middle East, World Gold Council (WGC), said here on Friday.

Also, he said, the Union Ministry of Consumer Affairs will be making hallmarking of gold compulsory from January next for all the 3.5-lakh jewellers across India. Due to increasing gold prices and the buyer’s preference to buy from reputed jewellers, some of the smaller jewellers are now becoming franchisees of the bigger ones, he said.

In India, Kerala has the highest per capita gold consumption, followed by Tamil Nadu, Andhra Pradesh, Gujarat and Maharashtra.

Replying to questions, Mr Mitra said with the western economies under pressure and emergence of demand from China and India in a big way, gold prices are expected to increase further, and may touch the Rs 30,000 per 10 gm mark in the country this year. Since 2003, gold prices have increased by about five times and, in 2010, the returns on its investments were 16.68% compared to returns on other modes of investments ranging between 3.5% and 7.9%.

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