It is difficult to understand how the current account deficit will come down by gold monitisation. Banker also need to keep Gold reserves as a collateral for issuing of the the gold bonds. Also as indicated there is no provision now to keep gold as a crr so the extra burdun on the end provider of the bond will lie. ie the government or the banker. Ultimately in cyclic economic all cant be benefited at once. Hence need to look it a closer.

I think Gold Monetization is an good step, as it serves both the purpose, reducing CAD- which boost the economy and help investors savings in paper gold. As said above, govt should focus on marketing GOLD BONDS through various channels viz.. distributors & IFAs.

I appreciate suggestion given by Mr Kalyaraman that temples should accept Gold Bonds as offering by devotees. It pains me when gold ornaments are stolen from temples at small towns.

I would appreciate if the viability of the scheme is analyzed from the point of view of retail investors. I look forward for someone to come out with an authoritative and in depth analysis that can help a distributor to advice and guide his investors.

Many offer gold to temple even today, make it mandatory that such offerings to temples be in the form of Gold bond only. Temples and families have broken jewels which when sold to a jeweler is purchased at a discount. Encourage such jewels be converted into Gold deposits. Such small beginning may open people to participate in the scheme(s) over a period of time. The need is to break the ice first somehow.

We should also rely less on Oil imports.Use Solar power,Wind power, Use of quality public transport,etc. This Scheme should also endeavour to avoid speculation. In Price of gold.This should also not act as a safe haven for people with unaccounted Cash & Gold.

Very nice information.