The rising gold prices in India vis- -vis the commoners are of no consequence since the average citizen doesn't even contribute to one percent of the Gross Domestic Product (GDP), Deputy Governor of the Reserve Bank of India (RBI) Dr. K C Chakrabarty said here, on Thursday.
Addressing a symposium -Banking Tech Summit- hosted by Confederation of Indian Industry (CII) here, he said that the yellow metal was an index of elite society of yore.
"Wearing the gold as a jewellery was a culture of the rich society when this was in 1000 AD when we were a rich country, contributing to 30 percent increased GDP. Today you do not contribute to even one percent of the GDP and you bring 50 million-60 million dollar," Chakrabarty said.
Commenting on the strict banking regulations, he said that banks shouldn't exploit the clients, particularly, the poor and vulnerable sections of the society.
"The provider of products and services must remain viable. Without that you cannot do any business - that is number one. Number second it shouldn't be exploited and this is why Banking Regulation Act says that banks need to serve the public goods. It is a public utility service. And third issue in both the things what we have said minimum thing that we expect from the banks, any commercial entity to do that in their business poor should not be subsided. These are the only three principles we have said," Chakrabarty added.
The devaluation of the rupee has hit the gold market, leading to a sharp hike in the price of the metal.
The jewellers believe that the market situation is not favourable at present, as the customers were unwilling to spend due to high prices.
The fall in the rupee, which hit a record low last week, has sent Indian gold prices soaring despite the weak global trend, limiting imports. The Indian government doubled import duty on gold to 4 percent in March in a bid to curb its bloated current account deficit. (ANI)