Former Reserve Bank Governor Venugopal Reddy said today the government needs to come out with a comprehensive gold policy owing to the metal’s role in the economy and to start handling the precious metal in a better way.
Speaking at ongoing Hyderabad Literary Festival here, Reddy also said it was the confiscated gold from smugglers that was pledged in the international market to tide over the country’s balance of payments crisis in 1990.
“It is time we have a positive approach to policy for gold. There must be positive comprehensive gold policy and I believe it is so important for the economy because so many people are dependent on it,” he said.
“Crores of rupees are traded in the market — so many are consumers, so many are producers — and the linkage it to financial sector is increasing. Therefore, it is time for the government to think of issuing a white paper on a positive, comprehensive policy for gold,” Reddy said in his speech, which was titled “Gold — Black, White, and Yellow.”
He maintained that gold is the ultimate currency in the world, though domestically possessing it is part of Indian culture and for women it acts like insurance.
This post was published at India Times
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