The World Gold Council has suggested that banks be allowed to offer gold-backed saving products to channelise gold investments in the banking sector.
The Reserve Bank of India should permit banks to offer gold-backed savings and investment products, instead of routing Rs 5,000 crore (Rs 50 billion) savings every year to jewellers and bullion dealers, WGC managing director Sanjeev Agarwal said.
Financial institutions must also be allowed to offer gold loans, while the government should take initiatives to develop a spot market for gold in the country, he said.
"Banks and other financial institutions should be allowed to trade on commodities exchanges on a spot-price basis. They should also be allowed to develop investment product linked to gold such as gold-backed certificates and bonds," he said.
The council also sought a reduction in import duty of gold jewellery imports to 10 per cent in order to boost the export of gold jewellery.
"The reduction will help artisans and trade to better understand global jewellery market and help them offer designs and products preferred by the international consumers," he said.
He added that this measure would also ensure finished gold jewellery to be imported through the official route and increase in customs duty revenue.
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