Banks to be allowed to do bullion business
Posted on: 26/Nov/2018 5:41:33 PM
The government is likely to let banks do bullion business including holding, buying, selling, and hedge and leverage gold. With that banks will get facilitated to intervene development of bullion as asset class.
According to the current norms, banks are allowed to serve the part of channelizing import of bullion for jewelers. Gold can be sourced from the bullion banks internationally (like Nova Scotia) and supply for trading without any kind of risk in holding gold.
Speaking about this, the MD of World Gold Council in India, PR Somasundaram says allowing this bullion banking is a huge step in improving gold infrastructure in our country and make gold a valuable asset. Upon allowing bullion banking, banks will be able to handle bullion and deal with gold account, hedge and be an active part in the gold spot exchange.
