India Floats Idea of Setting up Gold Board

gold-barNew Delhi: The Indian Government has floated the idea of a Gold Board to ensure coordinated policy action, reports the Business Standard.

The finance ministry held a round of discussions last month with stakeholders and sought their views on a National Gold Board, a body on the lines of the Financial Stability and Development Council. A government official said discussions were on and no decision had been taken yet. Sources said a final decision was likely to be announced in the Budget.

The Financial Stability and Development Council comprises all financial market regulators for coordinated oversight. A similar model is being proposed for gold because bullion-related decisions are taken by the Directorate General of Foreign Trade, the Reserve Bank of India and the customs department.

Their lack of coordination was felt a couple of years ago when the government restricted gold imports. Two months after the a gold monetization scheme was launched, it is yet to take off for the want of several clarifications. According to industry executives, banks, hallmarking centres and gold refiners are set to start signing tripartite agreements. Last month’s meeting called by the finance ministry had two major items on the agenda. The first was creation of the National Gold Board and the second was setting up a Gold Exchange, which the India Bullion and Jewellers Association and BSE have proposed to do.