Come new year, RBI may shut down counters for exchange of notes, coins
HYDERABAD, DEC. 17:
From New Year, individuals and traders may not be able to get coins and exchange of currency notes from offices of Reserve Bank of India.
It is learnt that the apex bank is all set to shut down its counters or currency chest offices for distribution of coins/currency notes, according to a decision taken in its monetary policy statement in 2012-13. There are a few hundred counters offering this public service in the branches of the RBI across the country.
The move would imply that the general public, including traders, will have access to supply of coins/exchange notes only through the branches of commercial banks. At present 90-95 per cent of exchange of notes and coins is done by the apex bank.
The United Forum of Reserve Bank Officers and Employees is up in arms against the proposal on the grounds that it would cause inconvenience to the public as there has always been a shortage of coins and the move also works against the staff interests.
“This will have a deleterious impact on the staff strength of the banks and their morale as a good-number of employees of all cadres are engaged in this customer-friendly activity…,’’ the union said in a representation submitted to the RBI Governor last week.
The union had also slapped a strike notice in this regard, it is learnt.
18 DEC, 2012, 04.01AM IST, ET BUREAU
Govt mulls plans to curb gold imports
NEW DELHI: The government is considering schemes such as gold deposits, gold-linked accounts andpension products to curb demand for the precious metal, blaming its massive imports for the high current account deficit.
The mid-year economic analysis of 2012-13 tabled in Parliament on Monday said that gold-backed products will help the investor enjoy benefits of investment in the metal without investing in the physical commodity.
"We are worried about gold imports...The way to curb holding of gold is to create more attractive financial instruments," the finance ministry's chief economic advisor Raghuram Rajan said.
He said some gold-linked instruments have been talked about by the RBI but potentially there could be other financial instruments to attract investments away from the yellow metal.
The analysis said new gold-backed financial instruments in the form of modified gold deposits and accumulation plans, besides gold-linked accounts and pension products linked with the gold are some measures being considered to reduce the attraction of a direct investment in bullion and jewellery in the domestic market.
It, however, struck a note of caution by saying that these investments would have to be monitored to see whether the overall demand for the metal actually falls.
India is world's biggest consumer of gold and demand for the yellow metal had steadily risen over the past few years, but 2010-11 and 2011-12 saw an unusual rise.
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