IGPC wants banks to be allowed to buy gold, become bullion bankers

The move will enable them to source locally, finance bullion and refining business, apart from allowing them to hedge positions on exchanges and create gold-backed products

With the gold sector awaiting reforms and a completely new comprehensive policy to overhaul the business after several bouts of upheaval, two proposals are expected to form the base for the way Indians trade and deal in gold. One is the establishment of a Gold Board and other is the advent of Bullion Banks.

This is what  the India Gold Policy Centre (IGPC), set up by the IIM-A recommends: “For building market infrastructure and developing liquidity in the physical market, banks that are, as of now, only importing and selling gold on industry’s behalf should grow to become bullion banks.”