Following discussions between the Finance Ministry and stakeholders over last month, the Indian government is contemplating setting up a gold board, as per reports. The Board which if comes into form would be similar to that of Financial Stability and Development Council, would ensure coordinated policy action, as per reports. A decision to this effect is expected during the Budget this year, as per reports.
The setting up of the gold board was cited as a need for the industry, as currently the decisions regarding gold were orchestrated by the Directorate General of Foreign Trade, the Reserve Bank of India and the customs department. Owing to the widespread of authorities to take decisions on gold, the gold policies’ implementations were not very well coordinated.
The new gold body would help bring about a systematic smooth coordination between the decision makers and others involved in the policies to make the implementation more effective.