Mr Gokarn made this statement during the concluding day of the recently-held BANCON (All Banks conference). “It (high gold imports) is creating some macroeconomic stresses and so the challenge is to find ways to replicate the financial characteristics of gold without necessarily causing physically importing,” he said.
Last fiscal, there was a 39 percent rise in gold imports and in gross terms, it constituted for 80 percent of the current account deficit, which reached an all time high of 4.2 percent. Mr Gokarn said, adding the net gold imports constitute about 1.8 to 2.4 percent of GDP.
Drawing from a report under preparation, Mr Gokarn suggested four new products which could be introduced to arrest high gold imports:
(a) A modified gold deposit scheme
(b) A gold linked account that will act as a demat account
(c) A gold accumulation plan that will work on the lines of the SIP (Systematic Investment Plan) for mutual funds
(d) A gold pension plan that will encourage people having high gold possessions sell and get returns on liquidation over a long period.
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