AIJGF pitches bullion bank using idle gold to Piyush Goyal
India might get a Bullion Bank, if a new proposal from the All India Jewellers and Goldsmith Federation (AIJGF) goes through.
The plan? Use idle gold sitting in people's homes and institutions instead of relying so much on gold imports.
The idea was just pitched to Commerce Minister Piyush Goyal, who seems open to discussing it further.
Gold ETFs may lend 20-30%
The Bullion Bank would collect unused gold and lend it out to jewelers, exporters, and refiners, helping meet demand without bringing in more imported gold.
There's also talk of letting gold ETFs lend 20-30% of their physical gold holdings through the bank under strict rules.
If this takes off, the 3.5 crore people dependent on India's gold and jewelry ecosystem could benefit if it helps keep more money within India.
More discussions are expected soon.