Exhort banks to herald gold deposits : Indian Gems and Jewellery Association

Gold  |  2013-06-20 07:30:48   |   By

The All India Gems and Jewellery Trade Federation (GJF) has urged the Government to encourage banks to launch gold deposit schemes

MUMBAI (Scrap Monster) :  The All India Gems and Jewellery Trade Federation (GJF) has urged the Government to encourage banks to launch gold deposit schemes, which they believe could help tap the immense household gold reserves of the country.

Indian households carry about 25,000 tonnes of idle gold. Gathering at least 10% of the above reserves through successful investment plans would eradicate the short supply concerns by the jewellers. Moreover it would ensure uninterrupted supplies for nearly three years. According to Mitesh Khimji-Regional Chairman,GJF, the central bank of the country should put gold deposit schemes into action at the earliest, as the recent import restrictions have already started impacting the jewellery industry of the country.

According to GJF, the recent curbs on gold import by the Government and the RBI would ease the CAD situation temporarily, but may prove to be harmful for the nation in the long run and may even jeopardize the jewellery industry.

GJF has called upon the government to introduce an amnesty scheme by which non-resident Indians could gift gold tax-free to their relatives and friends residing in India.

GJF is also reported to have submitted a white paper to the Finance Ministry which outlines various steps that could curtail the country’s gold imports.