Reserve Bank of India should issue gold and silver coins: Private companies must not be allowed to market coins of gold and silver

Posted Wednesday August 19, 2015 by CSLRA India

RBI

Several private companies both Indian and foreign are making huge profits by marketing gold and silver coins by selling these at exorbitant prices with photos of celebrities (like Sachin Tendulkar) and Hindu gods and goddesses (like Lord Ganesha) embossed on these coins. Reserve bank of India (RBI) and Union Finance Ministry should take immediate steps to stop sale of such profit-making coins in gold or silver. Sale of gold and silver coins marketed by banks, private firms and even government-agency like MMTC increases tremendously during festive season. Gold and silver coins issued in British regime are available in plenty as duplicates because of their popularity as auspicious and gift items even though fabrication of fake gold and silver coins is crime.

Union government should take steps to counter the menace. RBI can issue official 24-carrat gold in Rs 20000 denominations with weight of 5 gms. To minimise chances of duplication, these coins should be numbered. A guarantee-certificate bearing number of the coin and security thread should be plastic-sealed with each coin mentioning weight and purity as attractive gift-items. Face value of coins can be increased after value of gold in coin crosses seventy percent of prevailing face value of the coin. Likewise pure silver coins of 10 gms can be issued in denomination of Rs 1000.

Only RBI should be authorised to issue round-shaped gold and silver coins to be easily available through all branches of public-sector banks and post-offices. System will be net revenue earning for Union government because suggested plastic-packed coins will never come in actual circulation. All these coins should be made conveniently available in plenty at all offices of RBI and bank-branches throughout the country. These coins can also be issued to commemorate occasions. Sale of gold and silver by private establishments in form of round coins can be banned. Sale of metal may be allowed by only banks in rectangular or square form.

MADHU AGRAWAL