Bullion Banking to Bring About Key Changes to Gold Market

In its outlook, WGC said that the country is likely to move away from the current consignment model for bullion imports in India.

SEATTLE (Scrap Monster): The World Gold Council (WGC), in its latest market series report, said that bullion banking is expected to bring significant changes to gold market landscape in India.

According to the report, bullion banking is one of the key pillars to address various challenges facing the gold industry, including lack of quality assurance, the unorganised state of the market and a lack of trust in international markets. It will help to establish the country as one of the leading global and regional markets. The country needs to address roadblocks such as regulatory restrictions, lack of infrastructure and limited bullion banking expertise, in order to build successful bullion banking industry.

In its outlook, WGC said that the country is likely to move away from the current consignment model for bullion imports in India. In future, banks and refineries may be allowed to export bullion in future. Also, the bullion imports into the country may be routed through the international gold spot exchange (IIBX).

The setting up of the bullion banking is likely to increase liquidity for bullion trade through inter-bank lending and borrowing and central bank bullion lending to commercial banks and other entities.

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