No plan to buy back gold: Govt

Yesterday it was reported that citing a source that the buyback will start soon

Finance ministry today said that there is no proposal currently to allow the banks to buyback gold from the general public to take help the plunging currency.

“I’ve learnt of this from media (gold buyback from public)… I’m not aware of any such thing” said Rajiv Takru, financial services secretary here today.

Yesterday Reuters had reported citing a source “this will start soon, we have discussed (it) with banks."

Takru was in Mumbai today for a review meeting with public sector bank chiefs. He discussed range of issues with the bankers.

“We discussed corporate debt restructuring (CDR), non performing assets (NPA), direct benefits transfer (DBT), financial inclusion, opening of new branches and follow up of agriculture debt waiver” Takru said adding “lot of follow up action was discussed.”

He also said that now there is complete unanimity that genuine cases of distress need to be supported and willful defaulters treated. 

“There was a complete unanimity and I would emphasise that there was complete unanimity on how willful defaulters are going to be treated and today in the meeting I have also communicated that message (to banks) which I think was very important that absolutely no consideration will be shown to willful defaulter,” secretary said.

“Banks have been advised that they need to cut down their gross NPAs and therefore willful defaulter must be dealt with as firmly, as correctly and as expeditiously as possible” Takru added further.

He also said recapitalization plan of public sector banks is on track.  “We have got out plan of action ready and a decision will be taken (on recapitalization)...we have got our all matrix worked out.” Government has set aside Rs 14,000 crore for recapiltalisation of PSBs this year.  “ It only requires a couple of signatures to for that order to put into effect” Takru said.