Amid Prime Minister Narendra Modi’s call to conserve forex reserves, the All India Jewellers and Goldsmith Federation has proposed setting up a dedicated bullion bank within the GIFT-IFSC or India International Bullion Exchange framework to act as a central institution for mobilising, standardising, lending and settling domestic gold.
The federation also called for allowing gold ETFs to lend up to 20-30 per cent of their physical holdings through a regulated bullion bank framework, and suggested a revamp of the government's gold monetisation scheme, which it said had failed to achieve scale since its 2015 launch due to structural weaknesses.
