Mumbai: A Central bank panel wants banks to expand their gold jewellery loan portfolio to monetize stocks of idle gold in the country, as well as avoid any curbs on loans against gold jewellery and gold coins to individuals.
The panel, set up by the Reserve Bank of India (RBI) to review regulations on gold imports and companies lending against gold, recommended a combination of demand reduction and supply management measures for gold, among other things.
The central bank on Wednesday released the final report of the panel, chaired by K.U.B. Rao, an adviser to RBI’s department of economic and policy research.
To discourage investments in physical gold, the panel said RBI should consider introducing products like a gold accumulation plan, gold-linked accounts, modified gold deposits and gold pension products, among other measures.
The central bank said in a statement it will examine the recommendations of the working group and take a view.