When Budget says don’t buy gold, why are banks selling yellow metal?

A customer at the Karnataka Banking Ombudsman’s Town Hall meet, on Tuesday, expressed concern over banks setting targets for selling gold to customers. The main purpose of the Town Hall meeting was to listen to the grievances of the public with regard to instances of deficiencies and problems while dealing with the banks. Sudhir Ghate, one of the participants, said the Union Finance Minister’s Budget speech urges people to refrain from buying additional gold. “I request that banks should not sell gold. And there should not be targets for banks to sell gold,” he said.

POLICY LEVEL DECISION

Replying to this, K.C. Chakrabarty, Deputy Governor of Reserve Bank of India, said that if a bank is selling gold, RBI will not come in its way. Banning a particular activity is a policy level decision.

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