A recent press report said that the RBI is to bring some kind of regulations to protect the people who invest and save their money in monthly scheme with the jewellers.
The report also said that the jewellers in most of the cities work more or less like NBFCs without permission from the Reserve Bank of India. These jewellers have launched a number of various gold saving schemes encouraging people to buy gold at the end of the specified term. In most of the instances the jewellers have disappeared with the money.
Mr.Ajay Mitra, Managing Director, India and Middle East, World gold council said that now RBI is expecting is looking at and is expected to bring in some regulations with regard to the gold jewellers. Further he also said that the Union Ministry for Consumer Affairs will be making hallmarking of gold compulsory from January for all the 3.5 lakh jewellers across India. Further he also said that consumers prefer big jewellers because of the raising prices and so some of the small jewellers are becoming the franchise of them.
As per the report, in India Kerala has the highest per capital gold consumption, followed by Tamil Nadu and Andhra Pradesh.