Govt plans deposit scheme, new policy to harness your gold holdings 

NEW DELHI: The government is likely to chalk out a comprehensive national gold policy to bring the yellow metal into proper use, while also addressing the important issues on its import and consumption that are driving up the current account deficit (CAD) that yawned to 4.8% of the GDP in the last fiscal year, leading to a free fall in the rupee.
India is the world’s largest importer of gold, and imported about 830 tonnes of gold in 201213. According to some estimates, the country could be sitting on as much as 31,000 tonnes of the yellow metal. If that is used somehow, the rupee could be strengthened.
The government has raised import duty on gold to 10% from 2% a couple of years ago, and also slapped some other controls on gold, but officials are looking for long-lasting measures a craze for gold and considering this, the government needs to have a clear policy rather than just increasing import duties to address the issue,” he said.

The government has been increasing import duties on the yellow metal, but with little effect on demand so far. Planning Commission deputy chairman Montek Singh Ahluwalia has said that he expects the measures taken so far to take effect in the third quarter, and gold demand to subside.
Industry chamber Assocham has called for a gold bank. “We have been suggesting to the finance ministry that we need a gold bank to address the issue,” said Rana Kapoor, president, Assocham and chief of Yes Bank.
Prime minister Manmohan Singh also said last week that imports of gold most be curbed to check the current account deficit (the difference between inflows and outflows of dollars).
NAME- RAJ GAURAV
               PGDM 1SEM