Banks' Gold Plans Fail to Shine
By M. Allirajan
The Times of India, Mumbai
Saturday, December 29, 2012
Even as the government is considering schemes like gold deposits to rein in the huge surge in gold imports, such initiatives haven't yielded much success in the past. Bank-led schemes to garner gold have not been able to mobilize the holdings of the yellow metal from the public in any significant manner.
SBI, which launched a gold deposit scheme in 1999, withdrew it as it was not successful. Though SBI re-launched the scheme in 2009, gold was mobilized largely from temples, trusts, and wealthy individuals.
Bank-led schemes collected only 36.1 tonnes of gold till 1996, a mere 0.4% of the gold stocks that were available at that time. The country has 18,000 tonnes in gold stock now. ...