Manmohan Singh's 1992 idea of 'Gold Bank' revived by RBI panel - Bullion Corporation of India
of gold, issuance of gold bonds in lieu of collection of gold stocks, storage and safekeeping facilities for bullions and close coordination with other international bodies such as World Gold Council.
The group also flagged the issue of scrapping gold, stating that almost 400 tonnes of it which enters the market every year does not lead to an appropriate price discovery.
The working group presented a concept paper for the setting up of the BCI with the backing of the RBI.
The group said initial capital for setting up the corporation can be contributed by the Reserve Bank and select commercial banks and institutions, and pegged the authorised capital at Rs 2,000 crore and the paid up capital at Rs 1,000 crore.
The RBI should hold 51 per cent of the corporation to begin, with the rest with financial institutions, it said, adding that the models of Discount and Finance House of India and Securities Trading Corporation of India can be followed.
It may have a non-executive chairman and a full time managing director appointed by the board who would act as the chief executive.
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