A recent press report said that the Reserve Bank of India (RBI) is likely to bring some regulation to protect those people who save money with the jewellers in monthly saving schemes for buying gold.
Reports said that jewellers in major cities are virtually working like non-banking financial companies (NBFCs), without permission from the RBI and have started on various gold saving schemes, where people can buy gold at the end of their saving term. In some instances, the jewellers have disappeared with the people’s savings.
Mr. Ajay Mitra, Managing Director, India and Middle East, World Gold Council (WGC), said that the RBI is looking at it and is expect it to bring some regulation in this regard.
He also said that the Union Ministry of Consumer Affairs will make hallmarking of gold compulsory from January next for all the 3.5-lakh jewellers across India. He said that gold prices are expected to increase further, and may touch the Rs 30,000 per 10 gm mark in the country this year.
Gold loans are gaining more credit nowadays as it provides instant cash without having to go through lengthy approval processes like home loan, personal loan, and business loan.