This refers to the report "RBI expands the scope of the gold monetization system"(January 10). The revised instructions open a new avenue for the productive deployment of the unused domestic gold stock. This is a welcome gesture from the Reserve Bank of India (RBI). New entities that have become eligible to invest their gold stock under this program must be informed of the benefits of integrating their gold inventory. The issues of trust, faith, emotion and laziness to take responsibility must be addressed with care and skill.

Experience shows that organizations do not spontaneously bid for gold, even if the investment generates substantial returns. Perhaps Tirupati is the only temple that derives substantial revenue from gold deposits. Other temples / religious organizations are sometimes secret even on the amount of gold in their vaults. The attention of governments on each asset as a source of income (read tax) is also the source of this complex of fear.

If the center is serious, considerable effort will be needed to raise awareness of the benefits. The availability of a sovereign guarantee for the invested gold, the professional treatment of gold conversion and the prompt payment of interest and the return of gold or the value of gold Gold will have to be made public as businesses.

M G Warrier Mumbai


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