You are here
India's central bank won't ban sale of gold coins
RBI Rules Out Ban on Sale of Gold Coins
From Outlook India
New Delhi
Tuesday, May 28, 2013
http://news.outlookindia.com/items.aspx?artid=799277
The Reserve Bank today ruled out a ban on sale of gold coins but asked banks to refrain from aggressively selling the precious metal.
RBI Governor D Subbarao told reporters here that the RBI did not intend to ban sale of gold coins by banks.
"We do not want banks to aggressively market gold. We do not want that to become a business. Gold loans are a very small part of the banking business," he said on the sidelines of a financial inclusion conference here.
... Dispatch continues below ...
Fred Goldstein and Tim Murphy open All Pro Gold
All-Pro Gold, run by long-time GATA supporters Fred Goldstein and Tim Murphy, offers its services to GATA supporters and anyone else interested in precious metals. The company brokers a full line of precious metals and numismatic coins. It aims to inform prospective clients about the importance of the monetary metals as part of a diversified financial portfolio and to keep prospective clients current with market trends. All-Pro Gold has competitive pricing and ships promptly to clients so they may have physical possession. Learn more by e-mailing Fred@allprogold.com or Tim@allprogold.com or telephone 1-855-377-4653 or visit www.allprogold.com.
In a bid to curb demand for gold, the RBI yesterday imposed restrictions on banks and non-banking financial companies for providing loans against gold coins as well as units of gold ETFs and mutual funds.
Saying the route of buying gold for the purpose of genuinely saving should be available to the people, Subbarao emphasised that investment in the financial sector is good for the economy.
He also noted that the attractiveness of gold is a "consequence of high inflation."
Talking about the need for financial inclusion, he said the RBI had a two-fold responsibility as a regulator and public policy institution and it was important to make people understand viable alternative avenues of investment as part of financial inclusion to wean them away from such schemes.
Subbarao said there were many "unscrupulous schemes" which did not come under regulatory purview which lure people with exorbitant rates of interest.
The conference was attended by some 90 delegates comprising rural customers, business correspondents and rural branch managers of commercial banks from Gujarat and Chhattisgarh.
* * *
Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:
http://www.goldrush21.com/order.html
Or by purchasing a colorful GATA T-shirt:
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
http://gata.org/node/wallstreetjournal
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
